Do Kwon: Charges Are Not Legitimate, I Am Not On The Run

Summary:

  • Terraform Labs CEO Do Kwon spoke about the ongoing debacle on Unchained, a crypto podcast hosted by Laura Shin.
  • Kwon tagged the charges levied against him and his company as “politically motivated” and questioned their legitimacy.
  • The Terra boss also denied being on the run but refused to disclose his current location citing personal security risks.
  • Both Interpol and South Korean authorities have issued arrest warrants for the crypto CEO.
  • The crypto billionaire also rebutted embezzlement claims against the Luna Foundation Guard regarding about $65 million in Bitcoin supposedly frozen on Kucoin and OKX. 

CEO and Founder of Terraform Labs Do Kwon said that he is not on the run from law enforcement amid pending investigations into Terra’s failure, Kwon’s involvement in the crash, and a red notice issued by Interpol.

South Korean authorities reportedly launched probes into Terra’s ecosystem after the project’s algorithmic stablecoin TerraUSD (UST) triggered an estimated $40 billion wipeout back in May 2022. The tumble also cratered UST’s sister token LUNA in the process and has kept Kwon in the headlines ever since.

Speaking with crypto host Laura Shin on the UnChained podcast, the Terra boss questioned the legitimacy of the charges against him by local authorities. According to Kwon, actions taken by South Korean prosecutors in the matter are “politically motivated”

Authorities claim that the Capital Markets Act was violated by Terraform Labs and its principals while UST and LUNA operated prior to May’s crash. Legal proceedings have been leveraged to craft new policies without due process, Kwon said on Tuesday’s podcast.

“We don’t think that any of the charges pertaining to the Capital Markets Act are applicable because the government’s stance has been that cryptocurrencies shouldn’t be governed by the Capital Markets Act because they’re not securities. We don’t believe these are legitimate charges and are politically motivated”

The crypto billionaire also claims that authorities have not contacted him regarding the charges and that public media has been his source of information regarding the case.

Do Kwon’s Whereabouts, LFG’s $65 Million Bitcoin, and UST Refund 

When asked about his current location, Do Kwon refrained from sharing this information as in previous interviews. Kwon said disclosing his whereabouts could jeopardize personal security and make it harder for him to “continue regular life”. 

The Terra CEO cited how multiple persons broke into his properties in Singapore and South Korea in May when Terra’s crash happened. However, Kwon claimed that he is ready to cooperate with authorities despite the secrecy surrounding his whereabouts. 

Singapore was Kwon’s last known location before authorities reported that he was no longer in the sovereign-island country.

Do Kwon also addressed claims that authorities froze $65 million in Bitcoin (BTC) owned by the Luna Foundation Guard (LFG). Reports erupted in late September that the non-profit organization launched to support Terra’s ecosystem, moved the BTC to wallets on crypto trading platforms Kucoin and OKX hours after Korean prosecutors issued Kwon’s arrest warrant. 

Kwon added that the public can expect more clarity on LFG’s activities and holdings since an on-chain analysis firm was hired to provide a report. The report is expected in the next few weeks, he said to Shin.

Finally, Do Kwon claimed not to have updates regarding the UST restoration plan. After the stablecoin failed, both Kwon and the LFG tweeted intentions to initiate a refund to begrudged UST holders. 

Kwon cited civil litigations against the LFG and said the foundation is not in a position to “make clear disposal of its assets”. 

10/ The Foundation is looking to use its remaining assets to compensate remaining users of $UST, smallest holders first.

We are still debating through various distribution methods, updates to follow soon.

At press time, Interpol’s red notice for Do Kwon’s arrest stands, and Korean prosecutors are reportedly working on invalidating his passport.

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