The Interpol has issued an international search and arrest warrant for the South Korean Do Kwonthe controversial person in charge of cryptocurrencies Moon Y land, whose collapse in May dragged the world market of virtual currencies to lose up to 300,000 million dollars. This was announced on Monday by the South District Prosecutor’s Office in Seoul.
At the beginning of May, Luna was one of the ten most valued cryptocurrencies in the world. A few days later, the value of this asset plunged, wiping out $60 billion along the way and leaving thousands of investors stranded.
The authorities of South Korea Kwon, a 31-year-old engineer, and five other executives from his company have been accused of Terraform Labsof multiple crimes, including the violation of national financial laws.
Unknown location
Last week, the Prosecutor’s Office already issued an order of detention against the co-founder of those crypto assets, but faced with the difficulties of finding him, they requested the help of the world police agency. At the time, Kwon was believed to be in Singapore, where he had been residing since the beginning of the year, but his whereabouts are currently unknown. South Korean authorities believe there is “circumstantial evidence of drainThe Interpol “red notice” asks police around the world to locate and temporarily detain the fugitive if he enters their territory for possible extradition.
I am not “on the run” or anything similar – for any government agency that has shown interest to communicate, we are in full cooperation and we don’t have anything to hide
— Do Kwon 🌕 (@stablekwon) September 17, 2022
Kwon responded to those accusations from the South Korean authorities by denying the larger one. “I am not ‘on the run’ or anything like that; to any government agency that has shown an interest in reaching out, we are in full cooperation and have nothing to hide,” he tweeted, appearing to laugh at the investigation.
Crypto market crash
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The Terra cryptocurrency, also known as UST, was powered by a algorithm that it should keep its price stable at a constant value of one dollar, thus avoiding the traditional volatility of currencies whose value depends on supply and demand. However, the system failed and with it the confidence of its investors. That hastened the collapse in its value. Kwon’s attempts to correct the fall failed and led to a fall of Bitcointhe world reference cryptocurrency.
The collapse of Luna and Terra exposed risky financial practices on the part of the company. The cryptocurrency market has not recovered since the implosion of these assets last May, which led to a “bank panic” -in the words of the United States Department of the Treasury- and the bankruptcy of other platforms such as Celsius Networkone of the largest crypto lenders in the world.
George is Digismak’s reported cum editor with 13 years of experience in Journalism