TerraUSD’s Do Kwon In Serbia, South Korea Says

TerraUSD creator Do Kwon. Image credit: Terraform Labs

South Korean authorities say Do Kwon, co-founder of failed TerraUSD cryptocurrency, has fled arrest warrant and is in Serbia

South Korea has announced the location of Do Kwon, the co-founder of TerraUSD cryptocurrency, who is allegedly on the run following its spectacular collapse that triggered a global crypto collapse.

In September South Korea issued an international arrest warrant for Do Kwon, as well as five other unnamed people he worked with at Terraform Labs.

The arrest warrant alleged violations of the South Korea’s capital markets law, and all six individuals are said to be located in Singapore.

Arrest, court, legal © rimira Shutterstock 2012

TerraUSD collapse

Do Kwon had moved to Singapore with his family following the collapse of his $40 billion digital asset project – which included the stablecoin Terra and its sister token Luna.

This move could have been prompted after the arrest of a South Korean crypto investor and social media personality called ‘Chancers’, who conducts streams on cryptocurrency-related topics.

Crypto streamer Chancers. Image credit: News1
Crypto streamer Chancers. Image credit: News1

Chancers was arrested in May after ringing the doorbell of Kwon’s condominium and speaking with his wife.

Chancers expressed regret for the intrusion, according to local media, but called for Kwon to appear in public and apologise to investors.

Chancers said he lost up to 3 billion won (£1.9m) in the crash, and said he came across Kwon’s home address on the internet.

He visited Kwon’s home on 12 May, livestreaming the visit to about 100 people via South Korea’s AfreecaTV streaming platform.

Kwon’s wife then telephoned police to ask for emergency protection.

Criminal investigation

The reclusive Kwon, whose company Terraform Labs is registered in Singapore, has been compared to Elizabeth Holmes, found guilty in January of defrauding investors in her company Theranos.

It is estimated that nearly 250,000 people had invested in Terraform Labs’ coins.

Kwon says neither he nor his company made money on the crash.

It is known that South Korea’s Financial and Securities Crime Joint Investigation Team has been investigating Terraform Labs and the coins’ collapse.

In July, South Korean prosecutors reportedly raided the home of Terraform Labs co-founder Daniel Shin.

And more than 1,600 investors have signed up for a class-action lawsuit against Kwon with two domestic law firms, LKB & Partners LLC and Kisung LLC.

Kwon has not exactly helped his cause. He is known for his caustic remarks about detractors, and told a YouTube crypto channel a week before the demise of TerraUSD, “95 percent [of coins] are going to die – but there’s also entertainment in watching companies die too.”

Just before the implosion he told followers on Twitter, “I love chaos.”

But on 13 May he tweeted, “I am heartbroken about the pain my invention has brought on all of you.”

On the run?

Now according to Bloomberg, South Korean authorities say they believe Do Kwon is hiding in Serbia.

The Seoul Southern District Prosecutors’ Office said it would work with Serbia to detain him.

South Korea alleges that Do Kwon had travelled via Dubai to an unknown country after leaving Singapore.

South Korea and Serbia do not have an extradition treaty but in the past both have agreed to requests under the European Convention on Extradition.

Do Kwon has previously denied that he is in hiding, but has not revealed his whereabouts.