Do Kwon Accused of LUNA Price Manipulation by Korean Prosecutors

Do Kwon Accused of LUNA Price Manipulation

South Korean prosecutors have accused Do Kwon, CEO of Terraform Labs, and an employee of manipulating the price of LUNA, Terra’s native cryptocurrency. Investigators reportedly uncovered evidence of this manipulation through private conversations between Kwon and the employee.

Evidence of Price Manipulation

Prosecutors cited exchanged messages as evidence, where Kwon allegedly instructed the employee to interfere with LUNA’s market price. A whistleblower revealed these conversations, which suggest Kwon ordered specific actions to influence LUNA’s value.

Do Kwon’s Current Status

Kwon is believed to be residing in Europe as an illegal immigrant, according to South Korean investigators. This comes after he initially relocated from South Korea to Singapore and later to Dubai.

Legal Challenges

Kwon faces multiple legal issues, including a $57 million case filed in the Singapore High Court. The lawsuit alleges that Terra’s stablecoin, TerraUSD (UST), was misrepresented as “stable by design” and capable of maintaining its peg to the US dollar.

Interpol Red Notice

Interpol issued a red notice for Kwon’s arrest on September 25, making him a wanted individual in most countries. This development escalates the international effort to bring him to justice.

Response to Allegations

Kwon and his representatives have denied the allegations, emphasizing that Terra’s core strengths were genuine. They have also refuted claims of violating South Korea’s capital markets regulations.

The case highlights the ongoing scrutiny of cryptocurrency projects and their leaders, particularly in cases involving alleged market manipulation and financial misrepresentation.