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As of Sunday, Do Kwon, the disgraced co-founder of the Terra ecosystem which collapsed dramatically in May and for whom Singapore police had issued an arrest warrant, is no longer in the country.

Last Monday, Kwon and five other people were named in an arrest warrant issued by South Korean prosecutors. He is largely responsible for the creation of two cryptocurrencies whose stunning demise in May rocked global crypto markets.

Blockchain platform Terraform Labs, which Kwon co-founded, has been accused of fraud by its investors following the company’s demise.

The Seoul prosecutor’s office has claimed since at least mid-September that he and the others accused of violating capital markets law are all in Singapore.

Where is Do Kwon? Image: Coinpedia

Do Kwon says he has nothing to hide

Do Kwon tweeted on Saturday after local police released a statement saying he had nothing to hide and was offering “full cooperation” to government bodies.

The arrest warrant was issued after a lengthy investigation and public outcry in South Korea following the collapse. According to blockchain analytics startup Elliptic, Luna and TerraUSD investors worldwide lost $42 billion.

On Sunday morning, he tweeted, “I’m ‘not on the run’ or anything like that,” although he didn’t specify where he was.

He reassured the government that “for any agency that has expressed an interest in communicating,” they would be fully cooperative and hold nothing back.

The company is “defending itself in numerous jurisdictions…and looks forward to clarifying the facts over the coming months,” he said.

Do Kwon: the soft-spoken crypto persuasive

Kwon, 31, is one of the most vocal and energetic crypto advocates.

In his heyday, as co-founder and CEO of Terraform Labs, he would boldly confront skeptics and blow the future of crypto out of proportion.

Thanks to its persuasive abilities, many people have come to believe that the Terra ecosystem is the best place to invest.

Of all the factors contributing to the decline of the crypto market this year, TerraUSD stands out as particularly crucial.

Stablecoins like TerraUSD (or UST) were created with one goal in mind: to maintain a constant value of one US dollar per coin – which it did before its value plummeted in May: first by small sums, then plummeting.

The high-profile failures of crypto lenders Celsius and Voyager and hedge fund Three Arrows Capital were all precipitated by the demise of Terra, and this event increased regulatory scrutiny of crypto investments and stablecoins.

According to reports, the United States Securities and Exchange Commission is reviewing whether or not Do Kwon’s Terraform Labs violated federal investor protection guidelines in the way it announced the UST.

Crypto total market cap at $937 billion on the daily chart | Source: TradingView.com

Featured image from Cuteness, Chart: TradingView.com



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