Two days after Terraform Labs cofounder and CEO Do Kwon tweeted that he was “not on the run,” South Korean authorities have asked Interpol to locate and arrest the executive because he is allegedly not cooperating with the investigation into the collapse of the company’s stable coins, TerraUSD and Luna.
The decision by South Korean prosecutors to loop in Interpol, reported by the Financial Times on Monday, is the latest twist in the disastrous case of Terraform Labs, which in May collapsed and saw the market cap of its two stablecoins go from more than $60 billion to nearly zero. Investors in the TerraUSD and Luna coins accuse Kwon of running a Ponzi scheme, and South Korean prosecutors are investigating him for purported fraud and tax evasion.
Specifically, South Korean authorities asked Interpol to issue a so-called “red notice,” which is a request to law enforcement worldwide to “locate and provisionally arrest a person pending extradition, surrender, or similar legal action.”
Monday’s red notice against Kwon came after a funny yet infuriating back-and-forth between him and South Korean authorities over the weekend over the meaning of “on the run.” In short, the Terraform Labs cofounder on Saturday said he was “not on the run,” while the Seoul Southern District Prosecutors Office on Sunday said…
