On Monday, the Seoul Southern District Prosecutors’ Office announced that Interpol had issued a “red notice” for the search and arrest of Do Kwon, the South Korean co-founder of Terraform Labs. Earlier this month, South Korean authorities requested assistance from the global police agency in locating Mr. Kwon.
Interpol has issued the warning to arrest Mr. Kwon for violating South Korean financial laws.
Last week, prosecutors in Seoul issued an arrest warrant for Mr. Kwon on suspicion of violating South Korean financial laws. In May, his cryptocurrencies, Luna and TerraUSD, crashed.
The South Korean government investigated Mr. Kwon and his company after the value of his cryptocurrencies, Luna and TerraUSD, plummeted in May, contributing to a $300 billion crash in the crypto economy. Investors were outraged, and calls for an investigation into Mr. Kwon and his company were made following allegations of tax evasion and fraud.
According to the Seoul Southern District Prosecutors’ Office, Mr. Kwon and five others were arrested last week on suspicion of violating the country’s financial laws. At the time, Mr. Kwon was believed to be in Singapore. According to Singaporean media, the police have informed them that he is no longer present.
Mr. Kwon took to Twitter after the arrest warrant was issued in South Korea to express his willingness to cooperate with investigators. “I am not ‘on the run or anything of the sort,” he wrote. According to the South Korean news agency Yonhap, prosecutors responded that Mr. Kwon was “obviously on the run.”
According to Interpol, a “red notice” alerts law enforcement agencies worldwide to locate and temporarily arrest fugitives pending extradition, surrender, or other legal action. Mr. Kwon must be repatriated if he is arrested outside South Korea. South Korea and Singapore do not have an extradition treaty. According to officials, South Korean prosecutors have requested that Mr. Kwon’s passport be revoked.
South Korea quickly became one of the world’s largest markets for virtual currency after experiencing its first cryptocurrency boom in 2017, ranking third in 2019, only behind the United States and Japan. According to the country’s Financial Services Commission, the country’s cryptocurrency assets increased to 55 trillion won, or about $46 billion, at the end of last year, with over 15 million registered users of trading platforms.