Interpol Reportedly Issued “Red Notice” for Terra’s Do Kwon

  • Bloomberg cited a text message from South Korean prosecutors, who claimed Interpol has requested law enforcement agencies worldwide “locate and provisionally arrest” Do Kwon.
  • The co-founder of Terraform Labs had previously claimed he was not “on the run”, but his location remains unknown after authorities confirmed he was not in Singapore.
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Prosecutors in South Korea have claimed that Interpol has issued a worldwide “Red Notice” for the co-founder of now defunct stablecoin issuer Terraform Labs, Do Kwon, Bloombreg reported in 26 September.

According to the publication — which cited a text message from prosecutors in Seoul — the international police organization issued the notice in response to charges related to the collapse of the Terra ecosystem. Interpol’s website explains that a “Red Notice” is a request to law enforcement worldwide to “locate and provisionally arrest” an individual pending “extradition, surrender, or similar legal actions”.

The efforts to find Do Kwon started on 14 September, when a court in South Korea issued an arrest warrant for Kwon and five other individuals, alleging they had violated the country’s Capital Markets Act. At the time, South Korea’s prosecutor’s office claimed all six individuals were located in the port city of Singapore, with the Ministry of Foreign Affairs immediately taking measures to revoke Kwon’s passport.

Several days later, the Singapore Police Force confirmed that the wanted crypto developer was no longer located in the city-state, where Terraform Labs was based in. On 17 September — two days before South Korea requested the Red Notice from Interpol — Kwon took to Twitter to say he was not “on the run”, and that Crypto Twitter had “no business knowing my gps coordinates”. He tweeted:

The problems with the Terra ecosystem Kwon co-founded started on 9 May, when its algorithmic stablecoin TerraUSD (UST) — now rebranded to TerraUSD Classic (USTC) — lost its peg to the U.S. dollar, causing billions of bollards worth of liquidations across the entire crypto market.

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October 21, 2022, 12:39 PM
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Korean Authorities Reportedly Make First Arrest in Terra Case
  • The head of Terraform Labs’ general business operations has reportedly been arrested under accusations of market manipulation and fraud.
  • The CEO of the company, Do Kwon, was issued on order to return his passport in 14 days, after which it will be invalidated.
  • Terraform Labs Calls Do Kwon’s Arrest Warrant an Overreach
    • Terraform Labs’ spokesperson said the case against Do Kwon has become “highly politicized”, and that Korean prosecutors had failed to uphold basic rights under the law.
    • The spokesperson also claimed that Terra’s Luna Classic (LUNC) token “is not, and has never been, a security”, and that prosecutors had expanded the definition of a security after it had collapsed.