Terraform Labs Calls S. Korean Authorities’ Arrest Warrant for Do Kwon Overreach: Report

A Terraform spokesperson claimed its luna cryptocurrency wasn’t a security, meaning it wasn’t covered by South Korea’s capital markets law.

AccessTimeIconSep 28, 2022 at 8:12 p.m. UTC
Updated May 11, 2023 at 5:53 p.m. UTC

Terraform Labs said South Korean prosecutors overextended their authority in seeking a warrant for the arrest of CEO Do Kwon, according to a report in the Wall Street Journal, citing a statement sent by Terraform.

A Terraform spokesperson claimed that its luna cryptocurrency wasn’t a security, meaning it wasn’t covered by South Korea’s capital markets law.

“We believe that this case has become highly politicized, and that the actions of the Korean prosecutors demonstrate unfairness and a failure to uphold basic rights guaranteed under Korean law,” the spokesman said.

Luna and its associated algorithmic stablecoin terraUSD collapsed in value in May, causing thousands of investors to lose billions of dollars.

Earlier this week, Interpol reportedly issued an international arrest request known as a red notice for Kwon. The spokesman who wrote to the Wall Street Journal declined to identify Kwon's location, citing "ongoing physical security risks to him and his family" and noting there have been attempts to break into his residences in South Korea and Singapore.

Kwon has yet to issue a statement via Twitter, but in prior tweets he has maintained that Terraform Labs is defending itself in multiple jurisdictions.

Prosecutors in South Korea have previously said that Kwon was "obviously on the run" and not cooperating with investigators.

UPDATE (Sept. 28, 2022 20:30 UTC): Added statements from Terraform spokesperson about Kwon's location.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Nelson Wang

Nelson Wang was CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.


Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.