2 mins read For a man who is not hiding, Do Kwon, the disgraced founder of Terra Labs, has been particularly hard to find.
South Korean prosecutors issued an Interpol Red Notice for his arrest in September. The collapse of the TerraUSD and Luna tokens wiped $40bn of market value over the summer, with Kwon on the run since.
The crypto king who vehemently denied that Terra Labs was a Ponzi scheme, but rather a project that “just didn’t work out”, may be hiding in Serbia.
South Korean authorities are now seeking assistance from their Serbian counterparts to extract Kwon. Kwon faces a litany of charges at home that have to do with breaches of capital markets laws and fraud offenses.
South Korean authorities have been successful in tracking Kwon’s global traipsing so far, arguing that he managed to leave Singapore and fly to Dubai, from where he headed to an unknown country.
South Korea and Serbia are not on any specific terms when it comes to extradition mandates, but both countries are part of the European Convention on Extradition.
Not everyone is optimistic about the country’s chances of success, says Korea University Cryptocurrency Research Center head Kim Hyoung-joong, who argues that Kwon is most likely on the move once again and may have fled Serbia already.
For all his faults and guilty behavior, Kwon may not end up entirely to blame either. The New York Times has reported that US federal prosecutors are now looking into Sam Bankman-Fried and FTX and whether the executive had something to do with the collapse of the twin tokens.
The report says that Bankman-Fried may have sought to manipulate markets and intentionally implode the coins’ value.
Kwon has corroborated this through a series of tweets in which he argued that FTX, Alameda Research and Genesis Trading drove the collapse of the TerraUSD and Luna tokens that unleashed an avalanche of unfortunate events in the sector.
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