Wanted cryptocurrency creator Do Kwon claims he is not running away

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Last Updated on September 18, 2022 by Bitfinsider

Do Kwon, the sought-after South Korean who founded the defunct cryptocurrency Terra, denied being on the run on Sunday (Sep 18) after the Singapore Police Force (SPF) indicated he was not where it had been thought he was.

On Wednesday, a South Korean court issued a warrant for Kwon’s arrest.

An arrest warrant has been filed for a total of six people, including Do Kwon, who are now residing in Singapore, according to a representative for South Korean prosecutors at the time.

Following the SPF announcement, Kwon’s whereabouts are unknown, and his tweets did not provide any information.

About US$40 billion in investor funds were lost in Terraform Labs’ failure earlier this year.

The 31-year-old was previously thought to be in Singapore, where he gave his first media interview since the collapse of the cryptocurrency operator in May.

Arrest warrants have also been filed by South Korean prosecutors for five additional individuals connected to the stablecoin TerraUSD and its sibling cryptocurrency Luna.

Kwon’s Terra/Luna system collapsed in May, sending the value of both currencies tumbling to almost nothing and having an impact on the whole cryptocurrency market. Losses resulting from its collapse exceeded $500 billion USD.

In order to maintain a comparatively consistent price, stablecoins are typically anchored to a real-world good or currency.

However, TerraUSD used an algorithm and computer code to keep its price at or near $1 US.

When Luna and Terra went into a death spiral, many investors lost their entire life savings, and South Korean authorities have launched numerous criminal investigations regarding the crash.

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