Updated on January 9, 2023 12:50 PM
The developer of the stablecoin TerraUSD (UST) and its sister token Luna, Do Kwon, is being prosecuted in South Korea for the collapse of the two coins earlier this month and breaking a capital markets law, which caused billions of dollars in losses for investors all around the world.
Four thousand four hundred disgruntled investors are hunting for Terra's Do Kwon, and the South Korean foreign ministry ordered Do Kwon to return his passport.
As TerraUSD decoupled from its dollar peg and the Terraform Labs ecosystem collapsed, the value of its sister coin, Luna, plummeted practically to zero.
According to local news from South Korea on November 3, 2022, Do Kwon and a partner are suspected of manipulating the price of LUNA, Terra's native cryptocurrency, according to evidence found by Korean prosecutors.
Kwon continues to be active on social media despite the global law enforcement endeavor to locate the controversial CEO; his most recent tweet was sent on November 3.
"Strangely, these past few weeks have been among my most creative times"-Do Kwon (@stablekwon) November 3,2022.
According to a report on November 3 by Korean Broadcasting System (KBS), a prosecutor's office representative from South Korea claimed they had gotten a "conversation history" in which "CEO Kwon directly ordered price manipulation."
A "messenger discussion" between Kwon and a former Terraform Labs employee was reportedly used as the basis for the purported proof. The prosecution withheld additional information, stating:
"CEO Kwon clearly ordered price manipulation, according to a discussion history that I cannot disclose in detail."
The news was discovered by the Terra whistleblower Fatman, who has been publishing allegations against Kwon and Terraform Labs' associates for the last few months.
On November 3, 2022, Fatman posted on Twitter that "Korean prosecutors have obtained a secret communication between Do Kwon and an employee where he provides orders to influence LUNA's market price."
One of the most spectacular price movements among all cryptocurrencies during the last bull market involved Terra's LUNC or Terra (LUNA) currency.
Before its catastrophic decline on April 30, its price increased by more than 2,800% from $4.18 in late May 2021 to its all-time high of $119.18 on April 5, 2022.
Kwon first relocated to Singapore from South Korea before moving to Dubai in the United Arab Emirates (UAE). He is now in Europe without a valid passport. He previously claimed he is "not on the run," and "making zero efforts to hide."
The Terra whistleblower, Fatman, added in his tweet, "They have also confirmed that he is an illegal immigrant living in Europe right now." One of the articles also stated that "Kwon, who has an arrest warrant, had his passport canceled as of today," adding:
"Do Kwon cannot cross international borders legally because he is now an illegal immigrant, regardless of where he is."
In September, Terraform Labs claimed that the prosecution's case against its co-founder had become "extremely politicized" and that prosecutors had broadened the concept of security in response to pressure from the public.
If discovered, Kwon will also have to deal with a $57 million lawsuit recently brought in the Singapore High Court against him, fellow Terra co-founder Nicholas Platias, and the Luna Foundation Guard (LFG).