Several twists and turns have occurred in the ongoing case and inquiry against Terra’s creator, Do Kwon. Despite Interpol’s efforts to locate him, Terra’s creator insists that he is not hiding and continues to conduct an “ordinary” life.
Latest reports from Terraform Labs indicate that they continue to view the case against Do Kwon as “extremely politicized.” Based on the spokesperson’s statement to Bloomberg, the prosecutors in South Korea have shown “gross inequality and an inability to uphold basic rights provided under Korean law.” He also argued that their allegations of violations of capital market legislation are completely baseless and that he had “no legitimate bias.”
In May 2022, the Terra ecosystem meltdown wiped out $60 billion in investor capital. The South Korean authorities recently asked Interpol to find Terra founder Do Kwon. In September, Kwon visited Singapore. City police said Kwon has left. Prosecutors had said Kwon was dodging them.
Do Kwon is Here and not fleeing
The Terra creator is not hiding anywhere, as he tweeted earlier this week. He claims to be leading a completely regular life. According to Bloomberg, a Terraform Labs representative said that Kwon “is in contact with all government entities that have wanted to connect with him” through his lawyers.
He also emphasized that “he is not on the run and is actively involved in the leadership and supervision of Terraform Labs.”
Kwon has allegedly been transferring more than 3,000 Bitcoins from Terra’s reserves, according to recent allegations. Unfortunately, the Luna Foundation Guard, the organization’s parent, has declined this offer.
Shortly thereafter, Do Kwon himself responded, stating, “What has been probably the most astonishing in all this is the quantity of disinformation that gets disseminated. None of TfL’s, LFG’s, or anybody else’s funds have been frozen; there is no cash out as claimed; I haven’t used KuCoin or Okex in at least a year; and there has been no cash out on either of those exchanges.
How did it Impact the Crypto Space?
The Terra collapse affected staked Ethereum (ETH) and led to a domino effect that caused Three Arrows Capital (3AC) and Celsius to go bankrupt. It also started the most challenging winter market ever seen in crypto history, leading to a downsizing trend and miners’ sell-off.
The Kwon case may also have a significant effect on the standing of crypto throughout its entirety. In a podcast, the Managing Partner of the crypto investment firm Dragonfly remarked on the Kwon case, saying:
“After meeting Do Kwon, putting his personality to the side,… South Korean officials also acknowledged that the Kwon case might inspire fear, establish a bad precedent for the crypto community, and hinder innovation. “I think the criminalization of Terra is a terrible precedent,” they said.
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