Following a request from South Korean prosecutors, Interpol placed Terraform Labs founder Do Kwon on a “red notice” list. TechCrunch has reported. That will create a call for law enforcement agencies around the world to arrest Kwon following the collapse of his blockchain company that took $40 billion from investors.
After Korean authorities issued an arrest warrant for Kwon last week, he tweeted that “he was not a fugitive” or “something similar”. However, prosecutors said they believed Kwon left Korea to “evade investigation” as he told them through his lawyers that he did not intend to appear before questioning. “He is clearly on the run, as his family members and key finance people from the company have also left for the same country.” [Singapore] at the same time,” they said.
Kwon and other Terraform Labs employees are under investigation for financial fraud and tax evasion following the collapse of their stablecoins, TerraUSD and Luna. Investors, many of whom lost their life savings after the crash, filed lawsuits accusing him of running a Ponzi scheme. The crack of the Luna token also influenced the to collapse from cryptocurrency hedge fund Three Arrows Capital.
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