The investigation into the Terra crash and associated fraud claims was started by South Korean authorities in the wake of the catastrophe, but Do Kwon, the co-founder of Terraform Labs and the company that developed Terra, is still missing. According to South Korean media, prosecutors in South Korea are debating the idea of collaborating with INTERPOL to issue a red notice for Do Kwon’s extradition.
Do Kwon, the co-founder of Terraform Labs, has reportedly been handed a “entry notification” by the South Korean Financial Securities Crimes Joint Investigation Unit, which is looking into the Terra collapse and associated fraud claims. Kwon is reportedly now in Singapore. Territory, investigators must be informed right away. Shin Hyun-seong, a co-founder of Terraform Labs, and Kim Mo, a former vice president, were also prohibited from leaving the nation at the same time.
According to South Korea’s Kyunghyang Shimbun, prosecutors in that country are debating whether or not to work with INTERPOL to issue a red notice for Do Kwon’s extradition. Do Kwon is believed to be in Singapore, although it is unclear exactly where he is.
On the 20th of last month, South Korean authorities searched the home of Terraform Labs co-founder Daniel Shin in Seoul. The following day, Kernel Labs, a business connected to Do Kwon, was also searched and detained. The two co-founders were the main subject of the investigation, according to South Korean prosecutors at the time. whether the person is believed to have stolen from the government.
Additionally, South Korean prosecutors broadened the scope of the search target and searched 15 locations, including seven South Korean cryptocurrency exchanges, including Upbit and Bithumb, and are accused of obtaining information about Do Kwon and other people’s transactions from one of these exchanges.
Korean exchanges are now being kept quiet.
Since the 20th, South Korean prosecutors have spent three days scouring these seven exchanges and seizing transaction documents relating to UST and LUNA, according to the “Korea Times” article. The focus of the investigation is Dumanu, the owner of Upbit, the largest exchange in South Korea. 20 million LUNA were purchased by the investment firm Dunamu & Partners in 2018 and all of them were sold in February 2021. Trading Luna resulted in a 130 billion won profit for the agency.
However, Dunamu and other exchanges claimed there had been no suspected insider trading involving Terra. Do Kwon has not appeared in front of the public since Terra’s demise. He only used online platforms to communicate with investors. Do Kwon is reportedly abroad, although it’s unclear exactly where he is. The supervisor and staff of Terraform Labs have been called in by the Korean prosecutor.
In light of the intensifying investigations by South Korean prosecutors, a representative of a local exchange in South Korea revealed that the majority of exchanges there are forced to maintain a low profile “Exchanges must maintain a low profile because the investigative authorities must do the same. It appears that it will take some time before the identities of the primary perpetrators of this scandalous incident can be confirmed.”
