Interpol has issued a red notice for Terra (LUNA) founder Do Kwon. Accordingly, the founder of Terra, which crashed in May 2021, is sought after by 195 countries. However, the Terra collapse and the prosecution of Do Kwon have the potential to affect some altcoin projects.
LUNA inventor wanted by red notice
The cat-and-mouse chase between South Korean officials and Do Kwon has taken on a new dimension. Prosecutors in Seoul announced on Monday that the LUNA founder has been added to Interpol’s red notice list. Accordingly, Kwon became a wanted fugitive in 195 countries. The trial against Do Kwon arose due to the suspicious collapse of the Terra project in May 2021.
Authorities around the world are investigating Kwon and Terraform Labs after Terra’s UST stablecoin lost its peg to the dollar. cryptocoin.com As we reported, UST, which lost its peg to the dollar in May 2021, caused $ 40 billion to be deleted from the crypto market. Millions of LUNA investors lost all their assets in this event. The altcoin wiped out 99.9% of its value, fueling an atmosphere of distrust and fear in the market.
Do Kwon took to Twitter to make a statement.
Kwon and Terraform Labs left South Korea for Singapore before Terra exploded. However, Singapore police said on September 17 that Kwon fled the country. Kwon took to Twitter that day, telling his followers he was not “running away”. This was a claim that South Korean officials later denied. Making statements about the Interpol allegations today, Kwon said that he did not run away again. He also underlined that his name is not yet on Interpol’s website.
LUNA collapse could affect these altcoin projects
The LUNA collapse caused a slump in the crypto market that hit Three Arrows Capital and the once giant crypto debt platforms. But retail investors were probably the biggest losers of the boom. Most investors have lost their lifetime savings. Months after this incident, the cryptocurrency market is still suffering. Now regulators are taking note of how to prevent future events like the LUNA collapse.
US lawmakers introduced a bill last week that would ban UST-like algorithmic stablecoins and potentially threaten other decentralized dollar alternatives like MakerDAO’s DAI. Crypto has seen countless projects rise and fall during its 13-year history. But none received as much regulatory attention as Terra’s failure. This is a bad sign for Kwon and Terraform Labs, and we may see tighter regulation of algorithmic stablecoins in the coming years. These stablecoins are:
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