Do Kwon, a sought cryptocurrency creator who is under suspicion of fraud after his coins Luna and TerraUSD lost $45 billion (€45 billion) in value, is apparently attempting to elude South Korean law enforcement.
Kwon relocated from South Korea to Singapore, where he co-founded the now-defunct stablecoin issuer Terraform Labs. Though he is not currently present in the city-state, the Singapore Police Force reported on Saturday.In a text message sent to Bloomberg on Monday, South Korean authorities stated that there has been “circumstantial evidence of escape” ever since he left Singapore. In response to questions regarding whether the office is aware of Kwon’s location or whether it plans to inform Interpol, the media source reported that prosecutors declined to comment.
Kwon was accused of breaking the Capital Markets Act last week, and an arrest warrant was issued for him as well as five other people who were allegedly involved in the case and were thought to be in Singapore.In a tweet on Saturday, Kwon defended himself, claiming that he was not hiding and that he was “defending ourselves in multiple jurisdictions.” He added that he had held himself to a “extremely high bar of integrity” and that he was “looking forward to clarifying the truth over the next few months.”
After imploding in May, Terra’s UST and sibling LUNA tokens lost over $45 billion (€45 billion) in value in less than 72 hours, hurting other cryptocurrencies as well as leading to the bankruptcy of three crypto firms.Three Arrows Capital was the most recent organisation to fail, leaving billions in debt to creditors.In an August interview with the NFTV series Coinage, Kwon stated, “I, and I alone, am accountable for any weaknesses that could have been shown for a short seller to start to take profit.” He reaffirmed his commitment to Terra and added that he was working with the police.
Late in May, Terra re-released the token Luna without the component that was responsible for Terra’s precipitous decline—its stablecoin UST.But the arrest warrant’s disclosure stunned the cryptocurrency market, sending the Luna token down more than 16% on Wednesday (September 14).In the extremely turbulent cryptocurrency market, stablecoins assert to be a reasonably safe sanctuary. They typically retain a 1-to-1 peg with the US dollar because they are designed to be pegged to a fiat currency.The Terraform Labs-developed algorithmic stablecoin UST, on the other hand, employed a sophisticated combination of code and Luna to stabilise the process rather than holding cash and other assets in a reserve to back its token.
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