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Where is Do Kwon? Interpol issues arrest warrant for Terra founder as LUNC price plunges

By Darius McQuaid

Edited by Charlie Mellor

12:10, 26 September 2022

Logo of Interpol at the 89th Interpol General Assembly in 2021
LUNC dropped by 10% after news of the “red notice”, but has since bounced back – Photo: Getty Images

Interpol has issued an international ‘red notice’ for Do Kwon, the co-founder and CEO of Terraform Labs – the company behind the stablecoin terraclassicUSD (USTC) and its sister token terra classic (LUNC) that both collapsed in value in May 2022.

South Korean prosecutors in Seoul on 26 September told Bloomberg that Interpol had issued the notice regarding Kwon. It comes after a South Korean court put out an arrest warrant on Kwon earlier in September and asked Interpol to circulate a red notice on him.

Five other individuals associated with Terraform Labs also have arrest warrants out on them in South Korea, accusing them of violations of the nation’s capital markets law.

The collapse of Terraform Labs resulted in $40bn (£37bn) of investor’s money being wiped out, which also fed into the current crypto bear market, and a hard fork that led to a new version of terra luna (LUNA).

LUNA to USD 

An Interpol red notice is a request to law enforcement agencies worldwide to “locate and provisionally arrest a person pending extradition, surrender, or similar legal action”.

According to Interpol, “criminals can flee to another country to try to evade justice. A red notice alerts police worldwide about internationally wanted fugitives.” However, the international police organisation stressed a red notice is not an international arrest warrant.

Red notice: LUNC drops and rebounds

In the immediate aftermath of the red notice, LUNC fell by 10% according to CoinMarketCap. However, LUNC has since bounced back from this fall and earlier on 26 September it was trading up 36.88% at $0.0003094. USTC  was also up by12.16% to $0.03374.

XRP/USD

0.53 Price
-4.340% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

DOGE/USD

0.15 Price
-5.200% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

ETH/USD

3,159.05 Price
-1.740% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

BTC/USD

64,586.60 Price
-2.680% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

Kwon himself has gone dark on Twitter since 17 September. One of his last comments was: “I am not ‘on the run’ or anything similar – for any government agency that has shown interest to communicate, we are in full cooperation, and we don’t have anything to hide.”   

The co-founder added that he would tell anyone where he is if they are a friend of his, have plans to meet each other or you are involved in a GPS-based Web 3.0 game.

Kwon went on to ask if others “would be comfortable with the same level of invasion of privacy for yourself”.

He also added: “We are in the process of defending ourselves in multiple jurisdictions – we have held ourselves to an extremely high bar of integrity and look forward to clarifying the truth over the next few months.”

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Radio silence from Terraform Labs

Terra’s official Twitter channel has also not attempted to address the issue of Interpol’s search for Kwon.

Terraform Labs did not immediately respond to Capital.com’s request for a comment. Nor did it respond when Capital.com asked for a comment in regards to Kwon having an arrest warrant placed on him by a South Korean court.

Markets in this article

LUNA2/USD
LUNA2.0 to USD
0.6387 USD
-0.0451 -6.720%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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