Interpol has issued a red notice to law enforcement authorities in an effort to locate Terra’s founder, following the issuance of an arrest order against Do Kwon, the founder and CEO of TerraForm Labs, by a South Korean court.
Interpol has asked that international law enforcement authorities find and detain Kwon so that he can answer questions on the $60 billion wipeout of cryptocurrencies he produced, according to a Bloomberg report from today. Prosecutors in Seoul texted Bloomberg to inform them of the development.
A Red Notice, as described by the global law enforcement agency Interpol on its website, is a request to law enforcement worldwide to locate and provisionally arrest a person pending extradition, surrender, or similar legal action.
All Efforts to Locate Kwon Have Not Yielded Positive Results
The most recent development occurred a week after it was claimed that Korean officials had asked the global law enforcement agency to issue a red alert for the TFL founder.
Recall that two weeks ago, the Korean government filed an arrest order for Kwon and five of his friends. The TFL founder and his partners were supposed to be charged with violating the laws governing the nation’s financial markets.
However, no matter what measures were taken to find Kwon, they were unsuccessful, leading officials to suspect he was running away. The location of the TFL executive is still a mystery, despite Kwon’s claims to the contrary in a lengthy Twitter thread.
As reported, Kwon moved $250,000 worth of USDC to an unidentified wallet while he was evading capture.
The Crisis of Terra and Its Resulting Collapse
Since its ecosystem collapsed at the beginning of May as a result of the algorithmic stablecoin UST, now known as UST Classic, being depegged from the US dollar, Terra has been in the headlines.
The loss of USTC’s dollar peg had a significant impact on all of Terra’s ecosystem tokens, including Luna, now known as Luna Classic. Massive crashes of USTC and LUNC both resulted in the loss of almost $60 billion.
Sadly, the TFL team is not concentrating on resurrecting its vintage tokens from the ashes since the firm chose an alternative strategy to recompense ecosystem collapse victims.
By burning and staking a significant number of the tokens in circulation, LUNC investors are determined to boost the value of the digital asset.
As of the time of publication, Terra coins are offline due to the project’s current crisis. Data on Coingecko show that LUNC has decreased 17.6% in the past day while LUNA has down 14.9%.