Technology

Cryptocurrencies: Interpol Issues Red Notice to Do Kwon, Founder of Terra Stablecoin

The vise compresses Do Kwon. Interpol has issued a red notice on the whereabouts of the South Korean founder of Terra stablecoin, accused of costing investors $40 billion after his stablecoin crash. The Seoul Prosecutor’s Office a few days earlier applied to this international organization with a request to add it to the list of red notices. He also asked the Foreign Office to revoke his passport, stating that Do Kwon was “on the run”.

“Interpol has issued a red notice against (Do) Kwon,” a spokesman for the Seoul Southern District Prosecutor’s Office told AFP on Monday, without giving details. In addition to the $40 billion lost by investors who invested their money directly in TerraUSD, the crash of the stablecoin last May caused a shock to the crypto market, resulting in losses of over $500 billion. The accident led to a South Korean court in mid-September issuing an arrest warrant for its co-founder, Do Kwon.

READ ALSO

Cryptocurrencies: Different Types of Scams Affecting Depositors

The 31-year-old suspect gave his first interview in Singapore in August to the media since the plane crash in May, in which he pleaded guilty. Since then, he has not been found: in mid-September, the Singaporean police denied rumors that he was still in the city-state. Do Kwon assured on Twitter that he was not on the run without revealing his whereabouts.

In April 2022, Terra’s value reached its peak. According to specialized platform CoinMarketCap, it was then the fourth largest stablecoin and the tenth major cryptocurrency by market value. A month later, Terra lost more than half its value in just 24 hours, setting off a wave of panic in an already hectic crypto asset market.

Very quickly, the stablecoin and its sister token, Luna, dropped to zero, resulting in over $500 billion in losses in the market and hitting the savings of many small investors. Since then, South Korean authorities have launched several criminal investigations into the case.

>> Discover 21 Million, Capital Cryptocurrency Newsletter

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker.