Terra’s co-founder Do Kwon is reportedly in Serbia, and South Korean authorities are seeking assistance from the Serbian government in the investigation.
“Recently, we obtained intelligence that CEO Kwon was in Serbia, and it was found to be true,” an official from the investigation stated.
31 years old Kwon Do-hyeong who headed Terraform Labs was the face behind the “Luna crisis” where investors lost over 50 trillion won due to the price collapse of the two sister tokens Luna and Terra in May.
Terraform Labs is the firm that issued both stablecoin Terra [UST] and crypto asset LUNA.
The Seoul Southern District Prosecutor’s Office’s Financial and Securities Criminal Unit obtained an arrest warrant for Kwon on charges of providing false information to investors in September, and Interpol also issued a ‘red wanted’, the highest level of wanted arrest and repatriation.
But just before the incident, Kwon quietly flew to Singapore in April and arrived in Dubai, United Arab Emirates before finally landing in Serbia.
It is still unclear why CEO Kwon went to Serbia. But prosecutors believe he is fleeing abroad to avoid investigation and is trying to find out if there is any third party involved.
The Terra founder made a long-awaited appearance in an exclusive interview on October 18 with renowned author and crypto journalist Laura Shin, TronWeekly reported.
Shin, the host of the Unchained podcasts, posed some challenging questions to the evasive founder.
The first of which was about the Red Notice that Interpol had issued calling for his arrest. Kwon replied he did not receive any copy of the arrest warrant and was awaiting confirmation.
He expressed his dissatisfaction with the Financial Services Commission of South Korea, for “creating new regulations through criminal enforcement proceedings.”
Calling the charges “illegitimate and politically motivated,” Do Kwon said he is complying with all the document requests made by the South Korean prosecutors.
Recently, the embattled CEO took aim at former FTX CEO Sam Bankman-Fried blaming the latter for the Terra-LUNA crisis.
Terra Founder Accuses SBF of Putting Significant Wager On Luna’s Price
He alleged that either SBF or Alameda received $1 billion in TerraUSD stablecoins from Genesis Trading prior to the UST depeg.
According to Kwon, Sam Bankman-cryptocurrency Fried’s trading business Alameda placed a sizeable bet that the value of LUNA would fall.