Do Kwon, the CEO of Terraform Labs, labeled the accusations made against him and his business as “politically motivated” and questioned their veracity.
Do Kwon, the founder and CEO of Terraform Labs, declared that despite ongoing investigations into Terra’s failure, Kwon’s role in the crash, and an Interpol red notice, he is not hiding from the law.
Following an estimated $40 billion wipeout in May 2022 caused by the project’s algorithmic stablecoin TerraUSD (UST), South Korean authorities reportedly opened an investigation into Terra’s ecosystem. Kwon has remained in the news ever since the fall, which also destroyed UST’s sister token LUNA.
The Terra boss questioned the validity of the accusations made against him by local police in an interview with crypto presenter Laura Shin for the UnChained podcast. Kwon claims that the South Korean prosecutors’ activities in the case are “politically motivated.”
Authorities assert that Terraform Labs and its executives breached the Capital Markets Act when UST and LUNA were in operation before the crash in May. According to Kwon on the podcast from Tuesday, legal actions have been used to create new policies without following the law.
“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-billionaire further asserts that he has not received any communication from the authorities regarding the allegations and that he learned about the issue from the public media.
Location of Do Kwon, $65 million worth of bitcoin owned by LFG, and UST Refund
Do Kwon did not disclose his current location when questioned, just as he had in earlier interviews. Kwon claimed that revealing his whereabouts might put his personal safety in danger and make it more difficult for him to “maintain daily life”.
The Terra CEO described how several people broke into his homes in South Korea and Singapore in May when Terra crashed. Kwon asserted that despite the mystery surrounding his whereabouts, he is prepared to work with authorities.
Before authorities confirmed that Kwon was no longer in the autonomous island nation, Singapore was his last known whereabouts.
The Terra boss answered the assertions that the Luna Foundation Guard’s $65 million worth of Bitcoin (BTC) was frozen by the authorities (LFG). In late September, rumors surfaced that the non-profit group established to support Terra’s ecosystem had transferred the Bitcoin to wallets on the cryptocurrency trading platforms Kucoin and OKX hours after Korean prosecutors had issued a warrant for Kwon’s arrest.
Kwon continued by saying that since an on-chain analysis company was recruited to produce a report, the public can anticipate more clarity regarding LFG’s operations and assets. He told Shin that the report will likely be out within the next weeks.
Finally, Do Kwon asserted that he had no new information on the UST repair plan. Both Kwon and the LFG announced their intentions to start a refund process for resentful UST holders once the stablecoin failed. He referenced civil lawsuits brought against the LFG in support of his claim that the foundation is unable to “make clear disposition of its assets.”
As of the time of publication, Do Kwon is still wanted by Interpol, and it is rumored that Korean prosecutors are attempting to get his passport revoked.
