Interpol sent a Red Notice to DO Kwon (founder of Luna Classic) in the early hours Monday morning. This issuance resulted from Do Kwon losing more than $60 billion in investors’ wealth.
The prosecutors in South Korea explained that Kwon is facing charges for the erosion of investors’ money. Do Kwon is also facing charges for violating the terms of his bail. the ‘Capital Markets Law,’ with multiple breaches cited.
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These issues have prompted discussions in crypto markets about Terra firm’s future and algorithmic stabilitycoins. This article details events surrounding Do Kwon and how he made it into Interpol’s most wanted List.
Earlier Developments Leading To Kwon’s Red Notice
In an always-evolving Defi world, it was unheard of for Terra to collapse earlier in the year. Other financial markets also felt the effects of this crash, which hurt crypto market. Crypto analysts believe investors have lost more than $45 billion.
Due to ongoing investigation, he moved Terra Headquarters to Singapore from South Korea after the crash. tax evasion charges inSouth Korea InterviewTerra founder Do Kwon stated that he will cooperate with investigators in investigating the Terra crash. He has nothing to hide. Further, Do Kwon acclaimed that he is a man with an “extremely high bar of integrity.”
However, South Korean prosecutors explicitly refute Do Kwon’s statement claiming he was not cooperating and was obviously on the run. Interpol took the necessary steps to investigate Do Kwon’s claims. A Red Notice was issuedTerra founder is available in more than 196 countries.Source: LUNCUSD Price Chart
Terra Classic Price Crash and Reversal
Following the news of Interpol’s Red Notice on Do Kwon, the downtrend price of Terra Classic continued. Investors were left disoriented after the announcement that the price of $LUNC fell by almost 20%.
Three Arrows Capital, a prominent crypto hedge fund that was founded after the crash of Terra Classic’s token, also collapsed due to this event. This has affected many crypto lenders who offer LUNC to the market.
Unexpectedly, however, $LUNC was not able to be foundInversed price actionThere is an uptrend of the price. According to coinmarketcap.com, LUNC gained more than 50% over the past 24 hours. It currently trades at $0.0003074 This could be a classic Pump and Dump scheme, so investors need to be careful. As Do Kwon is discovered, the crypto community expects more price development.
How Does LUNC Achieve Its Future?
South Korea’s spokesperson explained that Kwon’s Red Notice would create a bad precedent for crypto and could cripple any future innovation in the sector.
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A greater regulation of crypto markets will be necessary following the collapse Terra stablecoin. According to reports, the House of Financial Services Committee issued a bill last week that would have banned Terra stablecoin creation and issuing for two years.
Featured image by Pixabay, chart from TradingView.com