Interpol Issues Red Notice for Terraform Labs Co-Founder Do Kwon

Interpol Issues Red Notice for Do Kwon

Interpol has reportedly issued a "Red Notice" for Do Kwon, the co-founder of Terraform Labs, in connection with the collapse of the Terra ecosystem. This move by the international policing organization comes as South Korean prosecutors in Seoul pursue charges against Kwon.

Background on the Terra Ecosystem Collapse

The Terra ecosystem, which included the Luna and TerraUSD (UST) cryptocurrencies, collapsed earlier this year, wiping out billions of dollars in investor value. This event triggered widespread instability in the cryptocurrency market and led to regulatory scrutiny worldwide.

Role of South Korean Authorities

South Korean prosecutors have been actively investigating Kwon and Terraform Labs. The Red Notice, issued at their request, signifies a global call for Kwon's arrest and extradition to face charges in South Korea.

Implications of the Red Notice

A Red Notice is a request to law enforcement agencies worldwide to locate and provisionally arrest an individual pending extradition. This development underscores the growing international collaboration in addressing financial crimes linked to cryptocurrency.

The case highlights the legal and regulatory challenges facing cryptocurrency founders and the potential consequences of market instability.