Wanted cryptocurrency developer Do Kwon, accused by investors of fraud following the $45 billion (€45 billion) collapse of his Luna and TerraUSD cryptocurrencies, is reportedly trying to escape South Korean authorities.
Kwon moved from South Korea to Singapore, where the now-defunct stablecoin issuer Terraform Labs, which he co-founded, is based. However, Singapore police said on Saturday that he is not currently in the city-state.
South Korean prosecutors told Bloomberg in a text message on Monday that there was “circumstantial evidence of an escape” since he left Singapore. The media reported that prosecutors declined to comment on whether the bureau knew of Kwon’s whereabouts or whether they would contact the international police agency Interpol.

Last week, Kwon was charged with violating the Capital Markets Act and an arrest warrant was issued for him and five people allegedly connected to the case who were said to be in Singapore.
Kwon defended himself in a tweet on Saturday, saying he was not on the run and “we are in the process of defending ourselves in multiple jurisdictions – we hold ourselves to an extremely high bar of integrity and look forward to the truth coming out. next few months”.

Terra’s UST tokens and their sister tokens LUNA lost nearly $45 billion (€45 billion) in value in 72 hours in May after collapsing, causing other cryptocurrencies to take a hit and also bankrupting three crypto companies.
The latest entity to collapse was Three Arrows Capital, owing billions to creditors.

“I, and I alone, am responsible for any weakness that might be presented for a short seller to start making money,” Kwon said in an August interview with NFTV’s Coinage series. He also said he was cooperating with authorities and reiterated his commitment to Terra.

At the end of May, Terra relaunched the Luna token, without the element that caused Terrain to plummet – its UST stablecoin.
But news of the warrant shocked the crypto market, sending the Luna token down more than 16 percent on Wednesday (September 14).
Stablecoins claim to be a relatively safe haven in a highly volatile crypto market. They are intended to be pegged to fiat currency and typically maintain a 1-to-1 peg to the US dollar.
However, UST, created by Terraform Labs, was an algorithmic stablecoin, meaning that instead of having cash and other assets held in reserve to back its token, it used a complex combination of code and Luna to stabilize the process.