Over the weekend, Terraform Labs CEO and co-founder Do Kwon said on Twitter that he was not “on the run” or “anything like that.” He made the statement after South Korean authorities last week issued an arrest warrant for him and five other people linked to Terraform Labs for violating the country’s capital markets laws. But Korean prosecutors are unconvinced, especially since authorities in Singapore, where Kwon flew back to in April, said he is no longer in the country. Now prosecutors in Seoul’s southern district are asking Interpol to place him on the agency’s red notice list and revoke his passport The Financial Times.
According to that Interpol website, a Red Notice involves searching for “the location and arrest of wanted persons wanted for prosecution or serving a sentence” and is usually issued to fugitives. As Yonhap News noted, Kwon flew to Singapore in late April, around the time he was closing his company’s office in Korea. His family members and other key Terraform Labs associates reportedly followed him to the city-state in May.
The Terraform Labs executive and other employees are being investigated for financial fraud and tax evasion following the collapse of the company’s stablecoins, TerraUSD and Luna. $40 billion in investor funds were wiped out of the even. And those investors who lost their life savings in the crash filed complaints accusing him of running a Ponzi scheme.