- Do Kwon has denied claims that he’s “on the run” from authorities after a warrant was issued for his arrest this week.
- Singapore police reported that he had fled the nation Saturday, and prosecutors have hit again at his newest claims to say that he “escaped.”
- The crypto neighborhood has been calling for Kwon’s arrest since Terra collapsed in May.
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Kwon insisted that he was “not “on the run”” on Twitter Saturday. Authorities have steered in any other case.
Do Kwon Disappears
Do Kwon could or will not be “on the run,” relying on whom you ask.
Questions over the Terraform Labs CEO’s whereabouts surfaced this weekend after Singapore authorities issued a press release claiming that he was not in the nation. Reuters reported on the improvement Saturday.
Dear CT – I’ll let you know what i’m doing and the place i’m if:
1) we’re associates
2) now we have plans to satisfy
3) we’re concerned in a gps primarily based web3 recreation
Otherwise you haven’t any enterprise figuring out my gps coordinates
— Do Kwon 🌕 (@stablekwon) September 17, 2022
Within hours of the replace, Kwon took to Twitter to dismiss the claims. “I am not “on the run” or something comparable – for any authorities company that has proven curiosity to speak, we’re in full cooperation and we don’t have something to cover,” he wrote, including that Terraform Labs had held itself to “an extremely high bar of integrity” as it faces lawsuits in a number of jurisdictions. Crypto Briefing reached out to Kwon to ask about his whereabouts, however had not acquired a response at press time.
South Korean information outlet Yonhap adopted Kwon’s tweets with an update Sunday, reporting that authorities had dismissed Kwon’s claims. According to the report, the prosecution concluded that “it is clear that he escaped.” The report additional famous how Kwon had dissolved Terraform Labs’ Korean entity in April in the lead-up to Terra’s $40 billion collapse then departed for Singapore, one thing Kwon claimed was a pure coincidence when questioned following Terra’s implosion.
This weekend’s developments come after a Seoul court docket issued warrants to arrest Kwon and 5 of his associates earlier this week. The warrants alleged that the group had violated Korean capital markets legislation, native media reported citing a message from the prosecutor’s workplace. Following the replace, it emerged that South Korea’s Ministry of Foreign Affairs was looking for to revoke Kwon and 4 of his accomplices’ passports.
Should Terra’s Controversial Boss Be Jailed?
Kwon’s attainable arrest has been a scorching subject of debate in crypto circles since Terra’s failure in May, to the level the place a token referred to as “JailKwon” launched earlier this month. Many crypto neighborhood members have questioned how Kwon has evaded arrest so far, however the house has been divided on whether or not he broke any legal guidelines in overseeing Terra. Kwon and Terraform Labs are presently below investigation by Korean regulators and the U.S. Securities and Exchange Commission, and are additionally dealing with a number of class-action lawsuits.
Besides Terra’s implosion itself, the opaque nature of Terraform Labs and the Luna Foundation Guard’s operations has come below scrutiny in the neighborhood, notably after greater than $1 billion price of Bitcoin disappeared from LFG’s reserves throughout UST’s collapse. LFG stated it spent the funds attempting to protect UST’s peg, but it surely by no means produced any proof.
While it’s on the authorities to resolve whether or not Kwon must be jailed, as a lot as he has claimed that he’s not hiding, it’s obvious that authorities are eager to talk to him. Even if Kwon isn’t charged with any crimes, he’s change into one thing of a villain in the crypto neighborhood as a result of his conduct in the lead-up to Terra’s failure. Kwon grew to become infamous for his pompous takes on Crypto Twitter, usually describing others as “poor” and making thinly veiled makes an attempt to endorse LUNA by means of his and Terra’s official accounts. Terra’s makes an attempt to market UST as a “stablecoin” have additionally sparked debate over whether or not Kwon and his firm deliberately misled buyers. After Terra’s blow-up, Kwon was criticized when for launching a plan to revive Terra as Terra 2.0, cloning the blockchain minus its flawed stablecoin. Terra 2.0’s LUNA took a success this week as the arrest warrant information surfaced, as did LUNC (the ticker for the authentic LUNA).
Does Kwon need to be jailed? Maybe, however maybe that’s not the solely query price asking. Did he show a transparent lack of ethics earlier than Terra collapsed? Absolutely—and for that, many crypto fans will probably agree, it seems like Kwon is lastly getting his simply deserts.
Disclosure: At the time of writing, the writer of this piece owned ETH and a number of other different cryptocurrencies.