Do Kwon, the founder and CEO of Terraform Labs, which lost USD 40 billion in investor capital, is now wanted by Interpol after receiving a red alert.
The whereabouts of Kwon, the sought founder of Terraform Labs who is suspected of fraud following the huge collapse of the company's cryptocurrencies earlier this year, are unknown, and South Korean authorities have asked Interpol for help in locating him.
As per reports, the request was made when Singapore's police confirmed that Kwon was not where prosecutors had claimed he was living.
Investors in the blockchain company's cryptocurrencies TerraUSD and Luna filed complaints against Kwon in May, accusing him of operating a Ponzi scheme over the loss of billions of won following the crash of both coins earlier that month. As a result, the blockchain company has been under investigation for alleged fraud and tax evasion.
In an endeavour to extradite and imprison Kwon and five other people, including Terraform founder Nicholas Platias, the Seoul Southern District Prosecutors Office recently obtained court arrest warrants.
The five South Korean citizens under investigation have had their passports invalidated at the request of the prosecution, according to the foreign ministry.
Many young investors were alarmed by the abrupt collapse of the TerraUSD and Luna cryptocurrencies; some of them claimed their whole holdings had been destroyed or even left suicide notes.
The once-bullish TerraUSD and sister counterpart Luna almost lost all of their value in a crash that began in May, shocking people all across the world.
The "stablecoin" Terra USD and Luna, its digital coin equivalent, both experienced price declines of more than 99.99 percent from their highs and nearly USD 40 billion in investor capital in a single week. TerraUSD, also known as "stablecoin," is a cryptocurrency.
Financial officials in South Korea reported that as of late, 280,000 investors were thought to be holding 70 billion Luna coins.