Do Kwon Company criticizes Korean arrest warrant

 Terraform Labs, the company behind the Luna and UST cryptocurrencies, said that South Korean prosecutors "overstepped their authority" when deciding to arrest CEO Do Kwon.

"We believe the matter has been highly politicized. The actions of the Korean prosecutors show an unfairness and failure to uphold the basic rights guaranteed under Korean law," the spokesman said. Terraform Labs told the Wall Street Journal September 28.

Terraform Labs CEO Do Kwon. Photo: Bloomberg/News Crypto
Terraform Labs CEO Do Kwon. Photo: Bloomberg/News Crypto

On September 14, Kwon and five others were issued arrest warrants by the Seoul Court for allegedly violating national capital market rules. But according to a representative of Terraform Labs, Korean prosecutors have exceeded their powers. The reason is that legally, Luna is not a stock ticker, so it is not regulated by Korea's capital market law.

A spokesman for Terraform Labs said the Korean capital market law only applies if Luna is a collateral asset. However, the country's law has not yet provided for cryptocurrencies as collateral, so Kwon and the company did not violate.

According to the Wall Street Journal, Terraform Labs' argument stems from the bleak state of cryptocurrencies today. In most markets, it has not been included in the legal framework. Many countries are struggling to find ways to control, including the US and South Korea. Midway through the year, US officials cited Luna's case as the evidence needed to dictate future cryptocurrency regulations.

A representative of Terraform Labs said that Korean prosecutors arrested Kwon and investigated the company because of pressure from the public related to Luna's demise. Before that, this digital currency lost almost all of its value, being sued by many investors.

Terraform Labs declined to disclose when asked about Kwon's whereabouts now. "Kwon's location is a private matter. It involves the security risk of him and his family," a company representative said, and revealed that the authorities had searched the 9x CEO's residence in both Korea and Singapore.

On September 26, Seoul prosecutors said that the international police agency Interpol had issued a Red Wanted Notice to arrest 9x CEO with many charges related to more than 60 billion USD in cryptocurrency investors. "vaporize". A day later, Kwon claimed he wasn't hiding, still walking, shopping and "coding in the living room" but declined to say where he lived. He was later found to be trying to get rid of more than 3,000 Bitcoins by transferring them to centralized exchanges for sale.

Previously, Kwon was believed to be in Singapore, but the country's police confirmed he had left. According to Bloomberg, with the wanted Interpol, the move of Terraform CEO will be very difficult in the coming time, and can be arrested and extradited to Korea at any time.

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