Prosecutors said Kwon was “obviously on the run” after denying he was hiding from authorities.
The Seoul Southern District Prosecutors’ Office said Monday that it has begun the process of placing him on Interpol’s red notice list, as the manhunt for the Terraform Labs CEO intensifies. “We have begun the process of placing him on the Interpol red notice list and revoking his passport“, the office said. Financial Times made a topic on developments on Monday morning.
An Interpol red notice issued for Kwon would mean the Korean entrepreneur would become a fugitive wanted in 195 countries around the world. When a person is placed on the Interpol Red Notice list, authorities in the intergovernmental organization’s member countries are asked to locate and arrest him for possible extradition.
Today’s update follows another difficult week surrounding the creator of the Terra blockchain that collapsed last May. On September 14, a Seoul court issued an arrest warrant for him and five of his accomplices. Prosecutors revealed their intention to cancel his passport and those of four of the other five suspects.
We are in the process of defending ourselves in multiple jurisdictions – we have held ourselves to an extremely high bar of integrity, and look forward to clarifying the truth over the next few months
– Do Kwon 🌕 (@stablekwon) September 17, 2022
The Singapore police later issued a statement Saturday saying Kwon had fled the country, prompting him to on Twitter to tell his followers that he was not “on the run.” Do Kwon added that he and his colleagues have been cooperating with authorities as investigations into the Terra incident continue. “We are in the process of defending ourselves in multiple jurisdictions – we have held ourselves to an extremely high bar of integrity, and we look forward to clarifying the truth in the coming months“, he wrote. In response to Kwon’s statement, prosecutors said that “it is clear that he escaped,” South Korean media reported Yonhap reported Sunday.
While the red notice has yet to be finalized, today’s development is the clearest sign yet that Kwon could be about to have repercussions for the role he played in Terra’s $40 billion implosion. Do Kwon was the main figurehead of Terra, which memorably collapsed when its stable UST currency lost its peg to the dollar in May. Since then, Kwon and Terraform Labs have been investigated by numerous authorities around the world, and he is also facing several class-action lawsuits filed on behalf of Terra investors. In the fallout from the Terra explosion, Kwon has been charged with multiple offenses, including misleading investors, tax fraud, misappropriation of company funds and running a Ponzi scheme. He has repeatedly denied any wrongdoing.