Interpol issues red notice against Terraform founder Do Kwon

Interpol (International Criminal Police Organisation) has issued a red notice against Do Kwon, who is the founder of Terraform Labs. As per a Bloomberg report, South Korean prosecutors requested Interpol to locate and arrest Do Kwon, who is facing charges related to the $40 billion wipeout of cryptocurrencies.

Earlier this month, a court in Seoul issued an arrest warrant against five others along with Do Kwon, charging them with violating the country's Capital Markets Act.

Previously, South Korean prosecutors also accused Do Kwon, who is on the run, of non-cooperation. However, on September 17, Do Kwon took to Twitter and stated that the firm is in full cooperation. "We are in the process of defending ourselves in multiple jurisdictions—we have held ourselves to an extremely high bar of integrity and look forward to clarifying the truth over the next few months," he said.

Terraform Labs was behind the TerraUSD algorithmic stablecoin and its native token Luna. In May, Luna and stablecoin TerraUSD suffered a spectacular collapse, and this caused a huge loss in the crypto market.

The collapse also led to several countries looking into stablecoin regulations, with the crypto industry seeing several bankruptcies, including crypto hedge fund Three Arrows Capital.

The collapse also impacted a number of crypto lenders including BlockFi, Celsius Network, Voyager and others.

The crash also hurt market sentiments, with global crypto firms—Coinbase, Gemini, Robinhood, BlockFi, BitMex, and Crypto.com—downsizing their workforce.

(The copy was updated to correct style)