South Korean Investigators Deny Do Kwon Claims, Say Terra (LUNA) Founder Is On The Run

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Terra Founder Do Kwon On The Run, Flees Singapore.

The search for Do Kwon’s whereabouts continues.

After it was reported by The Crypto Basic that South Korean prosecutors had issued an arrest warrant for TerraForm Labs (TFL) founder Do Kwon, believed to be in Singapore, Singapore police on Saturday disclosed that Kwon is no longer in the country, with South Korean prosecutors asserting that the Terra founder is on the run.

Local media outlet Hankyung writes:

“It is considered that Do Kwon left Singapore at the end of April…

Prosecutor’s Office: Tera Kwon’s escape is evident…”

Hankyung further notes:

“The prosecution when started a forced investigation, such as a search and seizure; Kwon did not cooperate with the investigation, and around August appointed a lawyer and said that he did not intend to appear immediately at the prosecution.”

An official from the prosecution says, “There was absolutely no room for cooperation with Kwon when he lied that he was fully cooperating with government agencies.”

Terraform Labs CEO Kwon, whose whereabouts are currently unknown abroad, denied the escape rumors, but the prosecution refuted Kwon’s claim, saying, “It is clear that he escaped.”

In May, Kwon and his family departed for Singapore. At the same time, most of Terraform Labs’ financial-related key figures were also reported to have departed to the same country.

It is worth mentioning that South Korean prosecutors issued an arrest warrant for Terra founder Do Kwon and five other TFL employees last Wednesday. Prosecutors, as per the report, elaborated that the charges against Kwon and his colleagues involve violations of the Capital Market Act.

Notably, Kwon took to Twitter to deny claims that he is on the run moments after the Reuters report on Saturday indicating he had fled Singapore as South Korean prosecutors moved to revoke his passport. According to Kwon, he is not on the run.

Kwon claims to fully cooperate with any authorities that have indicated an interest in communicating. He added that his location is his private business, asserting that he and other Terrafrom Labs (TFL) employees involved have held themselves to high standards and are working to defend themselves.

 

It is worth noting that Do Kwon is still under investigation in South Korea for possible wrongdoing leading up to the Terra ecosystem collapse in May that wiped off over $40 billion of LUNA and TerraUSD investor funds. Notably, South Korean authorities question the timing of Kwon’s departure to Singapore and the closing of Terra’s Korean arm in April, just before the collapse. Meanwhile, he is investigating for issuing unregistered security in the US.

Additionally, Kwon and TFL face multiple class action suits in both jurisdictions from disgruntled investors who suspect foul play. Kwon, on his part, has consistently denied any wrongdoing, repeatedly asserting that he worked according to his convictions with no plans to defraud investors.

However, most crypto investors have lost faith in the once influential founder. This much is clear in the quote tweets in response to Do Kwon’s claims that he is not on the run and is willing to cooperate with authorities.

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Source: https://thecryptobasic.com/2022/09/19/south-korean-investigators-deny-do-kwon-claims-say-terra-founder-is-on-the-run/?utm_source=rss&utm_medium=rss&utm_campaign=south-korean-investigators-deny-do-kwon-claims-say-terra-founder-is-on-the-run