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Do Kwon’s Terra says case against the founder is unfair and ‘highly politicised’, as his whereabouts remain unknown

  • A Terraform Labs representative said there is ‘no reasonable basis’ for the accusation of breaches of capital-markets law in South Korea
  • Seoul has sought the help of Interpol to find Do Kwon, whose location is not known since Singapore said he’s no longer there

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TerraUSD collapsed this year after confidence in the project evaporated, exacerbating a cryptocurrency market rout. Photo: Shutterstock
Bloomberg

Terraform Labs, the digital-asset firm of hunted entrepreneur Do Kwon, rejected South Korean charges over a US$60 billion cryptocurrency collapse and said the case against him had become “highly politicised”.

A spokesperson for the firm said in a statement that prosecutors had demonstrated “unfairness and a failure to uphold basic rights guaranteed under Korean law”, adding that there’s “no reasonable basis” for their accusation of breaches of capital-markets law.

The prosecutors’ office in Seoul didn’t immediately reply to a request for comment on the statement.

South Korea has sought help from Interpol to find Kwon, whose TerraUSD stablecoin project collapsed in May, exacerbating this year’s crypto rout. His location is unknown after Singapore earlier this month said he’s no longer there. Prosecutors on September 14 said a court had issued a warrant for Kwon’s arrest.

Officials have previously suggested Kwon is evading their probe. The Terraform Labs spokesperson said the 31-year-old via lawyers “is in contact with all government agencies that have asked to communicate with him”.

The spokesperson said “he is not on the run and remains actively involved in the management and oversight of Terraform Labs”.

The statement followed controversy over a bitcoin reserve – the Luna Foundation Guard – connected to Kwon.

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