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Interpol has issued a “red notice” requesting that law enforcement nationwide seek out and arrest Do Kwon, the co-founder of Terraform Labs Pte. Ltd., the Seoul Southern District Prosecutor’s Office said on Monday.

Bloomberg reported Sunday evening that South Korean authorities requested Interpol issue the notice after issuing its own arrest warrant for Do Kwon and five others earlier this month, alleging tax evasion and fraud.

Do Kwon’s company oversaw one of the largest meltdowns in crypto history in May when its cryptocurrencies, TerraUSD and Luna, lost 99% of their value within a week, wiping out the combined $60 billion dollars of Terra’s market.

TerraUSD, or UST, was an “algorithmic” stablecoin, which meant that it was meant to keep a one-to-one “peg” with the U.S. dollar using its sister cryptocurrency Luna in a complex balancing system. During Terra’s market collapse, Terra lost its peg to USD, causing Luna’s value to go into a death spiral. In response, Terra Labs attempted to defend TerraUSD’s peg by spending billions in bitcoin, which ultimately failed.

Earlier this year, Do Kwon moved from Korea to Singapore, but South Korean officials said he no longer resides there.

Prosecutors in South Korea previously said that Do Kwon is “obviously on the run” and not cooperating with the investigation. Comments from officials came after Kwon claimed in a tweet that he was not on the run earlier this month, but shortly after that, it was determined he had left Singapore.

“We are in the process of defending ourselves in multiple jurisdictions — we have held ourselves to an extremely high bar of integrity, and look forward to clarifying the truth over the next few months,” Do Kown said at the time.

The collapse of Terra’s ecosystem led to a broader crypto market downturn dubbed “crypto crash” that claimed multiple victims across the crypto industry, starting with major hedge fund Three Arrows Capital.

The unraveling of 3AC led to a domino effect that took down numerous crypto lenders and brokers across the board including Voyager Digital, Celsius Network and Hodlnaut. Crypto markets also fell to all-time lows, bringing bitcoin down more than 70%, to below $20,000, from a high above $68,000 in November 2021.

Image: Unsplash

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