A few days ago, prosecutors in South Korea issued an arrest warrant for Do Kwon, who is the co-founder and chief executive of Terraform Labs.
The authorities had also reached out to the foreign ministry to have his passport canceled altogether. It was believed that Kwon was in Singapore, but as it turns out, he is not there either.
Now, Do Kwon has decided to respond to the news that is making headlines about him.
Kwon chimes in
On Saturday afternoon, a tweet appeared from Do Kwon in which the disgraced chief executive said that he was not on the run or something like that.
He added that he had not hidden from any governmental agency that wanted to communicate with him.
He stated that they were fully cooperating because they did not have anything to hide. Furthermore, he stated that they were defending themselves in a number of jurisdictions.
The co-founder of Terraform Labs said that they were holding themselves accountable and their integrity was quite high, so they would clarify the truth in the next few months.
It should be noted that the CEO started the thread by telling the crypto community that they did not need to know his exact GPS coordinates.
The authorities in South Korea have charged Do Kwon for violation of the capital market rules in the country.
Moreover, it is not just South Korea where he is facing legal challenges, but plenty of other jurisdictions are also looking into the chief executive of the now-collapsed Terra ecosystem.
The South Korean prosecutors had been investigating the co-founder of the company and had eventually issued arrest warrants.
Only a day later, reports emerged that the authorities were also looking into getting his passport voided. Reports said that the foreign ministry had been contacted for this purpose.
However, the process takes at least 30 days to complete. Initially, reports had stated that Do Kwon was based in Singapore.
But, the police in Singapore have disclosed that the Terra co-founder is not in the country and his whereabouts are currently unknown.
When the Terra ecosystem collapsed back in May, which includes the TerraUSD (UST) stablecoin and the LUNA token, it resulted in a huge selloff in the crypto market.
This had driven down the prices of Bitcoin as well as other cryptocurrencies. Even four months down the road, the crypto market has not been able to come out of the crypto winter.
Furthermore, the implosion of the Terra ecosystem also resulted in the collapse of a number of high-profile crypto lenders that had been exposed to it.
These include Celsius Network and Voyager Digital and crypto hedge fund Three Arrows Capital (3AC) also went down.
It also brought the attention of regulatory authorities to the crypto ecosystem. Reports have indicated that the US Securities and Exchange Commission (SEC) is also investigating Terraform Labs.
It is trying to assess whether federal investor protection rules were violated by the company in its stablecoin marketing.