Do Kwon, Terra’s co-founder, has recently thrashed South Korea’s charges against him, calling them ‘politically motivated.’
This year has been rough for the crypto industry as several frauds, exploits, and hacks took place, erasing a significant amount of funds from the crypto market. The collapse of Terra’s ecosystem has negatively affected the crypto sphere along with whale investors, and it attracted the South Korean government to lodge an investigation. After coming over several charges, Do Kwon now slams the charges made against him by the South Korean prosecutors as they are not legitimate for being politically motivated.
Do Kwon’s Biggest Busts
Terra’s co-founder, Do Kwon, is accused of one of the biggest busts ever in the volatile crypto market. Kwon now thrashed the accusations of the South Korean government against him as the charges are politically motivated and are not legitimate. Today, in a crypto podcast by Unchained, hosted by Laura Shin, Kwon said, “We are a little bit disappointed in the way that prosecutors are attempting to create new regulation through criminal court proceedings, whereas that should be within the job description of the legislature, or at the very least the financial regulators.”
Do Kwon is currently wanted by government authorities in his native country South Korea for violating the country’s Capital Markets Act. TerraUSD stablecoin, created by Terraform Labs, was meant to have a constant value pegged to the US dollar through an algorithmic connection with LUNA. But the coin suddenly had a pump-and-dump situation, leading to the crash of Terra’s ecosystem and wiping nearly $40 billion from the market.
Kwon is also unknown of the charges made against him due to Terra’s crash, as he has not even seen his arrest warrant. He came to know about all the allegations and information through the media, and he is now unaware if there are any more charges against him besides violating the Capital Markets Act. Kwon said, “We don’t think that any of the charges pertaining to the Capital Markets Act are applicable because the government’s stance has been that cryptocurrencies shouldn’t be governed by the Capital Markets Act because they’re not securities. We don’t believe these are legitimate charges and are politically motivated.”
The Crypto Titan Of Terra Becomes A Fugitive
Do Kwon seems to keep his location confidential while asking him about it. He said, “I could answer that, but the problem is that I don’t want there to be a bunch of guesswork in terms of which country and which city I have been living in. The easier that I make it for people to figure out my location, the harder it is for me to continue regular life.”
Do Kwon looks confident as he claims he is not on the run despite being wanted by authorities. He also ensures complete cooperation with the South Korean government regarding his violation. However, according to some local reports of Singapore, Do Kwon had fled to the city-state just a month ago.
Do Kwon said to Shin, “The main reason why I don’t want to talk about my location to the media is because, when the crash happened in May, there were lots of situations where personal security was threatened.” He also mentioned that “people broke into my apartment building.” He said that these incidents happen daily at both his houses in Singapore and South Korea. He explained, “Every time the location where I live becomes known, it becomes almost impossible for me to live there.”
Kwon also claimed that $65 million in bitcoin belonging to the Luna Foundation Guard (LFG), a non-profit supporting the Terra ecosystem, was not sold. He mentioned those funds were moved to crypto exchanges KuCoin and OKX in September, which did not indicate their selling. He said, “There’s been allegations that we moved LFG funds into a Gemini custody wallet, and then it’s sitting there or something like that. All we did was to confirm a trade with a market maker and transfer the Bitcoin to an address at the market maker’s instruction.”
