Do Kwon, the disgraced co-founder of the Terra ecosystem that had a spectacular failure in May, was the subject of an arrest order that was issued by South Korean prosecutors earlier this week. In addition, they requested that his passport be revoked by the finance ministry. It was assumed by the authorities hunting for Kwon that he was in Singapore; however, on Saturday, the police in Singapore said that Kwon is not in their country.
Do Kwon has weighed in on the discussion on Twitter at this point.
Kwon sent out the following tweet on Saturday afternoon: “I am not “on the run” or engaged in any other activity of a similar kind; for any government agency that has shown an interest in communicating, we are providing our full cooperation, and we do not have anything to conceal.
“We are now defending ourselves in a number of different jurisdictions; we have set an exceptionally high standard of integrity for ourselves, and we are looking forward to elucidating the truth over the course of the next several months.”
Kwon is being investigated for allegedly breaking regulations governing financial markets in South Korea, and he is also facing legal issues in numerous places.
The failure of the Terra ecosystem, which included both LUNA and the algorithmic stablecoin UST, sparked a widespread sale of cryptocurrencies, resulting in a price decline for Bitcoin and other leading digital assets. After a period of four months, the market has not emerged from the bitter crypto winter.
The failure of Terra also led to the high-profile failures of crypto lenders Celsius and Voyager, as well as the hedge fund Three Arrows Capital, and it has brought even more scrutiny on crypto investing and stablecoins from regulators. Reportedly, the SEC is investigating whether or not Kwon’s Terraform Labs violated federal investor protection rules with the way that it marketed UST.