Interpol issues Red Notice for the Terraform Labs CEO, Do Kwon, as part of the Terra Luna project collapse investigation which led to the loss of digital wealth worth billions of dollars.
As South Korean prosecutors seek to legally restrain Terraform Labs Pte.Ltd CEO, Do Kwon and his associates, Interpol have issued a Red Notice on the same.
The International Criminal Police Organization (Interpol) compels law enforcers globally to locate and arrest the South Korean cryptocurrency developer.
Interpol’s move comes after the prosecutors requested the worldwide police and crime control to issue the Notice on 19th September 2022. The prosecutors claim that Do Kwon is refusing to coordinate with an investigation on the TerraUSD and Luna tokens collapse.
Interpol Issues a Red Alert
Do Kwon faces intense global scrutiny over the Terra-Luna project collapse which wiped off $40 billion in investor wealth. South Korea issued an arrest warrant for Kwon on September 14. The arrest warrant claimed that Kwon violated the country’s capital markets Act.
A prosecutor, Choi Sung-kook, who works at the Seoul Southern District Prosecutor’s office confirmed the issuance of the Red alert. According to Choi, the Red alert also seeks custody of Kwon’s associates at Terraforma.
South Korean prosecutors also asked the Ministry of Foreign Affairs to cancel Kwon’s passport. However, no information indicates whether Kwon possesses passports from other countries. The prosecutor’s office declined to identify the five known associates of Kwon at Terraforma.
The Arrest Warrant for Do Kwon
In July, the Seoul Southern District Prosecutor’s office searched and seized evidence. The prosecutor raided 15 companies including seven cryptocurrency exchanges. The raids took place as part of the Terra-Luna investigation.
According to the arrest warrant served on September 14, Kwon and his associates violated the law. Do Kwon and his associates went against the local capital markets law.
The prosecutors consider Terra’s tokens and decentralized finance (DeFi) services as financial investment contracts. A lawyer at Lin law firm claims that prosecution seems easier when these items are considered securities.
Koo Tae-on believes that the case will present an easier route for the prosecution team. Subsequently, the red alert by Interpol mounts pressure on Kwon. The cancellation of his passport will make it easier for the prosecution to build a case against him.
Hwang Suk-jin claims that it will present a lot of difficulties for a foreign country to arrest Kwon on South Korean soil. The security expert and professor insisted on issues of treaties between the two.
The treaties will serve as either mutual assistance or extradition. Consequently, Kwon claimed that he was not on the run.
Kwon’s Whereabouts
Apparently, Kwon claims that the government agency continues to show interest in communicating. He, therefore, assured the agencies of his cooperation.
Kwon claimed that he and his associates intend not to hide anything from the agencies. However, his whereabouts remain unknown.
The Singapore police nevertheless told the media that Kwon remains currently out of the city-state of Singapore. The claim plays contrary to popular belief.
