South Korean prosecutors have refuted Du Kwon’s claim from over the weekend that he is not on the run and asked Interpol to issue a red notice against the Terraform Labs’ co-founder, escalating the publicly playing out drama following the $40 billion wipeout on his cryptocurrency startup in May this year.
The Seoul Southern District Prosecutor’s Office said Monday that Kwon was not cooperating with the investigation and had told them through his lawyer last month that he had no intention to appear for questioning, according to official statements cited by local media. The prosecutors have asked Seoul’s foreign ministry to revoke Kwon’s passport.
An Interpol red notice, which is call to law enforcement worldwide, can prevent individuals from being issues visas, restrict cross border travels, and “provisionally arrest a person pending extradition, surrender or similar legal action.”
Over the weekend, Kwon claimed he was not on the run from any government agency that had “shown interest to communication.” He added in a tweet: “We are in full cooperation and we don’t have anything to hide.”
Terraform Labs’ so-called stablecoin UST and cryptocurrency LUNA dramatically imploded in May after investors lost faith in the efficacy of its fundamentals. Major crypto exchanges including Binance and Coinbase delisted the token and discontinued several of its trading pairs. (Many exchanges have since revived limited support for the old token.)
South Korea issued an arrest warrant for Kwon last week, a move that saw many investors sell their positions in revived Luna token.
In an interview with Coinage last month, Kwon said he hadn’t been in contact with South Korean authorities. After the two coins – Luna and TerraUSD — crashed earlier this year, which wiped out about $40 billion of hundreds of thousands of investors’ money, the investors in South Korea and the U.S. filed lawsuits against Kwon over illegal fundraising and fraud.
South Korean prosecutors have accused Kwon of financial fraud. Terraform Labs and the prosecutor’s office could not immediately be reached for comment.