Terraform Labs Claims Do Kwon’s Case Is “Highly Politicized”
- Two weeks after South Korean prosecutors issued an arrest warrant for Terraform Labs’ co-founder and CEO Do Kwon, the company stated that the authorities had overstepped their authority.
- A Terraform Labs spokesperson claiming that the case has become “highly politicized” adding that the actions “demonstrate unfairness and a failure to uphold basic rights guaranteed under the local laws.”
- Despite going physically missing, Kwon has been constantly active on Twitter and recently tweeted that he was not on the run.
The wounds of TerraUSD (UST) and Luna’s collapse are still not healed, and the recently-gained headlines by Terraform Labs are acting like salt. Two weeks after South Korean prosecutors issued an arrest warrant for Terraform Labs’ co-founder and CEO Do Kwon, the company charged that the authorities had overstepped their authority.
A recent report by The Wall Street Journal cited a Terraform Labs spokesperson claiming that the case has become “highly politicized” and that the actions by the South Korean regulators “demonstrate unfairness and a failure to uphold basic rights guaranteed under the local laws.”
According to the spokesperson, Luna is not a security in legal terms. Therefore, they believe that the regulators should not bring it under South Korea’s capital-markets laws.
“We believe, as do most in industry, that Luna Classic is not, and has never been, a security, despite any changes in interpretation that Korean financial officials may have recently adopted,”
The spokesperson stated.
UST/LUNA crash not only affected its holders but to the whole crypto industry. The massive collapse resulted in a 99% drop in the native token’s prices and wiped around $40 billion from the industry. This sent several major crypto hedge funds into trouble, with Three Arrows Capital filing for bankruptcy. Later, the company rebranded the project to TerraUSDClassic (USTC) and TerraClassic (LUNC) but couldn’t perform well due to loss of trust among investors.
The statement coincides with the red notice issuance by the Intergovernmental organization Interpol on Tuesday that requests law enforcement agencies around the world to locate and arrest Do Kwon, who mysteriously disappeared after shifting from South Korea to Singapore. Recently, Singaporean authorities confirmed that Kown is not in the city-state.
Despite going physically missing, Kwon has been constantly active on Twitter and recently tweeted that he was not on the run and added:
“Yeah, as I said, I’m making zero effort to hide. I go on walks and malls; no way none of CT hasn’t run into me the past couple of weeks.”
The Terraform Labs founder’s houses were broken into in South Korea and Singapore, the company’s spokesperson claimed, adding that Do Kwon’s location has been kept a secret for months due to intensive physical security risks to him and his family.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
