Founder of Terraform Labs Do Kwon has responded to the news that he is a wanted man in South Korea.
The fallen-from-grace cryptocurrency executive said he was not “on the run” nor was he hiding.
Kwon is accused of misleading investors in the TerraUSD and Luna investment which resulted in a massive crash costing more than $40bn.
Last week, authorities launched a manhunt and assumed that Kwon was most likely hiding in Singapore.
However, a response by the Singapore Police Force argued that Kwon was “currently” not in the country.
No further details were provided by the police as to when he last was there. Kwon’s permit to work in Singapore expired on December 7, 2021, and a renewal is not likely given that he is high on South Korean authorities’ list of individuals to capture and bring to justice.
Despite the collapse of the stablecoins and digital assets launched under Terraform Labs, Kwon has denied culpability and argued that the project simply failed and that he had done nothing wrong or purposeful to actually mislead investors.
However, the scale of the crash has made authorities eager to bring someone to justice. Interestingly, other senior executives in Terraform Labs have not been targeted by authorities.
Kwon’s project completely subverted investor expectations, hence the seriousness of the case. Stablecoins are designed in a way that guarantees that they never lose value. The complete depreciation of TerraUSD was indicative of foul play.
To understand what happened, South Korean authorities are now on the lookout for Kwon who refuses to turn himself in.