Terra Co-Founder Do Kwon Still Says He's Not on the Run

The South Korean developer also continued to dismiss claims that $67 million was frozen on crypto exchanges OKX and KuCoin.

AccessTimeIconOct 18, 2022 at 1:57 p.m. UTC
Updated May 9, 2023 at 3:59 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Do Kwon, the controversial co-founder of Terraform Labs, the firm behind the Terra blockchain network, has denied claims that he is on the run from law enforcement, despite Interpol issuing a "red notice" for his arrest last month.

In an interview with Laura Shin on the "Unchained" podcast, Kwon explained that he moved to Singapore from South Korea before the collapse of the Terra ecosystem, which saw $60 billion in value evaporate in May.

"There's no reason why any government official would believe we fled to Singapore," Kwon said.

Kwon, who was also behind failed stablecoin project Basis Cash in 2020, also dismissed claims that any of his funds have been frozen.

"To say that the funds are frozen, I have not used KuCoin or OKX, as far as I can remember. I don't have any funds there. If they froze $67 million I would definitely have noticed," he reiterated. KuCoin and OKX are crypto exchanges.

"There has been allegations that we moved LFG [Luna Foundation Guard] funds into a Gemini custody wallet and that it's sitting there. All we did – to confirm a trade with market maker – is transfer it to an address on the market maker's instruction," he continued.

The collapse of the Terra ecosystem led to widespread financial and emotional damage across the crypto industry, with some investors reportedly losing their life savings. A man in Taiwan reportedly committed suicide after losing $2 million.

"Yes, I am sorry," Kwon responded after being pressed for an apology by Shin. "It could seem that the way we are responding to allegations and news reports that we are being defensive. That is not the case.

"Statements about the stability of UST led traders to gain confidence in a system that ultimately failed. I do apologize and own up to the responsibility of that," he concluded, referring to the terraUSD stablecoin that his company developed.


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

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Oliver Knight

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.

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.