South Korean Prosecutors Find Evidence Of Do Kwon Manipulating The Price Of LUNA Coin. Local reports from South Korea on Thursday, November 3, 2022 revealed that Korean prosecutors have allegedly found evidence showing Terraform Labs CEO Do Kwon and his colleagues manipulated the price of LUNA, Terra’s native crypto token.
The report also said South Korean prosecutors believed Do Kwon was currently hiding in Europe.
The news was discovered by a former Terraform Labs employee known as Fatman, an individual who has published damning accusations against Kwon and his Terraform Labs associates over the past few months.
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“Korean prosecutors have obtained a private conversation between Do Kwon and an employee in which he gave orders to manipulate the market price of LUNA,” Fatman wrote on Twitter, quoted from Bitcoin.com, Friday (11/4/2022).
Fatman shared the KBS News article, which summarized the same news the reporter described in the tweet.
Speaking with KBS News reporter Lee Do-Yoon, the South Korean Prosecutor’s Office official said he could not reveal details, but there was a history of conversations in which Kwon specifically ordered price manipulation.
Do Kwon Becomes an Illegal Immigrant
The news follows reports of crypto assets worth USD 40 million or around IDR 629.6 billion that were allegedly frozen by South Korean authorities. The assets are reportedly from crypto exchanges Kucoin and Okex.
Kwon, however, denied the seizure was his funds and he said he did not use the trading platform. Kwon has also repeatedly told the public he is not trying to hide.
A KBS News article written by Lee Do-Yoon said Kwon might be hiding in Dubai, but the reporter also added he was living in the area illegally.
“Do Kwon is now an illegal immigrant, no matter where he is, in any country, and he cannot legally travel between countries,” KBS News editorial translation Lee Do-Yoon explained.
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In addition to a report from KBS News, which claims South Korean prosecutors have evidence against Kwon, Terra co-founders and associates such as Luna Foundation Guard (LFG) members and Nikolaos Alexandros Platias have been named in the class action lawsuit.
The lawsuit originated in Singapore and the plaintiffs are seeking to claim damages of USD 57 million. The court case stems from 359 multinational investors who claim they suffered financial hardship due to the collapse of the Terra crypto ecosystem.
South Korean Prosecutors Find Evidence Of Do Kwon Manipulating The Price Of LUNA Coin. Previously, South Korean authorities said the international police organization (Interpol) had issued a red notice for Terraform Labs co-founder Do Kwon.
Kwon has been charged with violating capital market rules in South Korea and faces legal challenges in multiple jurisdictions. According to a South Korean prosecutor’s text message, a red notice for the co-founder of Terraform Labs has now been issued, meaning law enforcement agencies around the world will now work together to find and arrest the crypto founder.
Interpol red notices issued to fugitives who are wanted either for prosecution or for serving a sentence, act as a request to law enforcement worldwide to find and temporarily arrest a person awaiting extradition, surrender, or similar legal action.
However, at the time of writing, Kwon has yet to appear on Interpol’s red notice list, which features a total of 7,512 names. Reporting from Decrypt, Interpol said it does not comment on specific cases and individuals.
“Please note separately that most of the Red Notices are unpublished and are restricted to law enforcement use only,” Interpol said in a statement.
Authorities Hunt Kwon
Kwon, along with Terraform Labs co-founder Daniel Shin, are the key people behind the TerraUSD stablecoin algorithm, once the ninth largest asset in the industry by market cap, and its sister token LUNA.
The Terra ecosystem collapsed in May this year, resulting in huge losses in the crypto market, with more than USD 40 billion (Rp 609.2 trillion) of investor wealth wiped out in a matter of weeks.
Previously, South Korean prosecutors issued an arrest warrant against Kwon on September 14. They also asked the finance ministry to cancel his passport. This was followed by Interpol’s request to issue a red notice against Do Kwon
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According to South Korean prosecutors, Kwon left for Singapore in late April, but his whereabouts remain unclear. Singapore police said earlier this month he was not in the city-state.
The last time Kwon appeared on social media was on September 17, when he took to Twitter to say he wasn’t on the run or anything similar.
He also briefly said to every government agency that has shown an interest in communicating and has nothing to hide.
According to a local report emanating from South Korea, the country’s foreign ministry is seeking to cancel the passport of Terraform LabsDo co-founder Kwon.
Reporting from Bitcoin.com, Wednesday (21/9/2022), the report was published a day after it was reported that the Seoul Southern District Prosecutors’ Office issued a warrant for Kwon’s arrest.
On Wednesday, September 14, 2022, there was a report about Do Kwon published by Forkast News that said South Korean officials issued a warrant for Kwon’s arrest.
Kwon is believed to be living in Singapore at the moment and in several recent interviews, the co-founder of Terraform Labs said he was “devastated” when his crypto project collapsed.
However, Kwon has been accused of fraudulent acts such as allegedly cashing out USD 2.7 billion or around Rp 40.3 trillion before his two coin projects UST and Luna collapsed.
Kwon, Terraform Labs, and their associates are also facing a class action lawsuit for allegedly selling unregistered securities. Following the reported arrest warrant for Kwon, the following day the South Korean newspaper Munhwa published a story saying Kwon’s passport may be problematic.
According to Munhwa’s report, South Korea’s Ministry of Foreign Affairs will reportedly revoke Do Kwon’s passport. Local reporters noted in the report the passport cancellation process could take up to 30 days.
South Korean Prosecutors Find Evidence Of Do Kwon Manipulating The Price Of LUNA Coin. The Munhwa editorial also noted South Korean law enforcement officials wanted Kwon to return to South Korea for questioning.
During an hour-long interview with coinage.media published in mid-August, Kwon said South Korean officials had not contacted him about any investigation.
