Investigators Asserts That Terra’s Founder Is On The Run; Denies Do’s Claim

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Terra Classic USD (USTC) is now available on Binance's cross-border and isolated margins as a new borrowable asset
Terra Classic USD (USTC) is now available on Binance's cross-border and isolated margins as a new borrowable asset

As South Korean authorities assert that Terra Founder Do Kwon is On The Run and has fled Singapore, the search for his whereabouts continues.

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Do Kwon, the founder of TerraForm Labs (TFL), was said to be in Singapore when it was reported that South Korean prosecutors had issued an arrest warrant for him. 

However, Singapore police revealed on Saturday that Kwon is no longer there, even with South Korean prosecutors’ claims that Do Kwon is on the run.

Hankyung, a local media outlet, reports:

“It is believed that Do Kwon left Singapore at the end of April…

Prosecutor’s Office: Tera Kwon’s escape is evident…”

Hankyung adds that:

“The prosecution started a forced investigation, such as a search and seizure; Kwon did not cooperate with the investigation, and around August appointed a lawyer and said that he did not intend to appear immediately at the prosecution.”

“There was absolutely no room for cooperation with Kwon when he lied that he was fully cooperating with government agencies.” claims an official from the prosecution.

Do Kwon Denies the Escape Rumour

The CEO of Terraform Labs, Kwon, disputed the escape reports, but the prosecution refuted Kwon’s allegation, stating, “It is clear that he escaped.” Kwon’s whereabouts are currently unknown abroad.

Kwon and his family left for Singapore in May. The majority of Terraform Labs’ main financial leaders are also said to have left for the same nation at the same time.

It is worth recalling that South Korean authorities issued an arrest order for Terra founder Do Kwon and five other TFL workers last Wednesday. According to the report, prosecutors explained that Kwon and his colleagues are accused of violating the Capital Market Act. The founder of Terra is no longer in Singapore, according to Singapore authorities.

After the Reuters report on Saturday claimed Kwon had fled Singapore as South Korean prosecutors moved to revoke his passport, Kwon took to Twitter to deny claims that he was on the run. This is when the South Korean investigators responded as stated above. He wasn’t running, according to Kwon.

Kwon declared that he would completely comply with any authorities that showed an interest in speaking with him. Prosecutors rejected all of his claims, saying that he and other Terraform Labs (TFL) employees involved have held themselves to high standards and are actively defending themselves. He continued by saying that his location is his private business.

Majority of Crypto Investors no Longer Trust Do Kwon

It is important to note that Do Kwon is currently the subject of an inquiry in South Korea for alleged fraud prior to the collapse of the Terra ecosystem in May, which destroyed approximately $40 billion in LUNA and TerraUSD investor funds. 

A notable point is that Terra’s Korean branch was shut down in April, right before the collapse, and Kwon’s departure for Singapore. He is currently under investigation for allegedly issuing unregistered securities in the US.

A number of class action lawsuits have also been filed against Kwon and TFL in both jurisdictions by angry investors who believe there has been fraud. Kwon, for his part, has continuously denied any wrongdoing and maintained that he operated in accordance with his beliefs without having any intention of defrauding investors.

However, the majority of crypto investors no longer believe in the founder, who was highly influential. The quotation tweets in response to Do Kwon’s assertions that he is not on the run and is prepared to work with law enforcement make this very evident.

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