- Do Kwon and his employee tampered with the price of LUNA, say Korean prosecutors.
- The South Korean investigators think Kwon is residing in Europe.
- Interpol issued a red notice to locate and arrest Kwon on September 25.
South Korean prosecutors have purportedly found evidence that Do Kwon and an employee tampered with the price of LUNA, Terra’s native cryptocurrency token. According to the local newspaper, the South Korean investigators think Kwon is residing in Europe.
The news was discovered by a whistleblower for Kwon and Terraform Labs:
Korean prosecutors have obtained a private conversation between Do Kwon and an employee where he gives orders to manipulate LUNA's market price. They have also confirmed that he is currently residing in Europe as an illegal immigrant. https://t.co/z7Z5R8rtEq— FatMan (@FatManTerra) November 3, 2022
The prosecutors have cited exchanged messages that took place between Kwon and his employee as evidence.
The South Korean prosecutor’s office stated:
I can’t reveal the details, but it was a conversation history where CEO Kwon specifically ordered the price manipulation.
Kwon’s representative has denied these allegations through interviews until recently. Kwon in an interview earlier said:
We tended to emphasize only the good things about Terra, but I think all of Terra’s core strengths were true.
Additionally, Kwon and his representatives have in the past refuted claims that they broke the capital markets regulations in South Korea.
According to sources, Kwon initially relocated from South Korea to Singapore before moving to Dubai. As of November 3, Kwon is allegedly living in Europe without a valid passport. If identified, Kwon will also have to deal with a $57 million case recently brought by Singapore High Court against him, Terra co-founder Nicholas Platias, and the Luna Foundation Guard (LFG).
The plaintiff alleged that Terra’s stablecoin, TerraUSD (UST) — now TerraUSD Classic (USTC) — was falsely represented as being “stable by design” and capable of maintaining its peg to the US dollar by Kwon, Platias, and the LFG.
Earlier Interpol issued a red notice to locate and arrest Kwon on September 25, which means he is now wanted in most countries.
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