Do Kwon, the CEO of Terraforma Labs, is accused of being responsible for the multibillion-dollar Terra-LUNA stablecoin project’s demise, and South Korea is exploring several legal avenues to regain custody of him.
According to a Bloomberg story citing South Korean officials, the International Criminal Police Organization has issued a “Red Notice” for Kwon, which means that law enforcement agencies around the world will now work together to find and apprehend the cryptocurrency founder. Interpol defines a Red Notice as an order to find and temporarily detain a person pending extradition, surrender, or other legal action.
On September 14, South Korean authorities issued a warrant for Kwon’s arrest. They also requested that his passport be cancelled from the finance ministry. A request for Interpol to issue a red notice against Do Kwon was made after that.
Kwon is facing legal issues in several jurisdictions after being accused of breaking capital markets regulations in South Korea.
The TerraUSD algorithmic stablecoin, formerly the ninth-largest asset in the world by market value and its sibling token LUNA were the brainchild of Kwon and another Terraform Labs co-founder, Daniel Shin.
In May of this year, the Terra ecosystem collapsed, causing massive losses in the cryptocurrency markets and wiping out the fortune of investors by more than $40 billion in a couple of weeks.
The last time Kwon was seen online was on September 17, when he posted on Twitter to clarify that he was not “on the run or anything similar,” and to state that “for any government agency that has showed interest in communicating, we are in full cooperation and we don’t have anything to hide.”