Red notices are issued to fugitives who are wanted either for prosecution or to serve their sentences. The Interpol website states that a Red Notice is "a request to law enforcement agencies around the world to locate and apprehend a person pending extradition, transfer or similar legal action".

On top of this, it has come to light that the Seoul South District Prosecutor’s Office has initiated proceedings to cancel the businessman’s passport. Accordingly, Kwon may soon find himself restricted from travelling between states.

Terra founder Do Kwon

Meanwhile, exactly where Kwon is now is unknown. Authorities thought the entrepreneur could be found in Singapore, but that has turned out to be incorrect.

Do himself is in no hurry to reveal his whereabouts. As he tweeted over the weekend, there are only three instances in which he would disclose his location: to friends, if he has plans to meet someone and if it is a GPS-based Web3 game.

What will happen to Terra LUNA?

In addition to contacting Interpol, the local prosecutor’s office also wants Do Kwon to have his Korean passport revoked – a request to that effect has already been filed with the government. The assumption is that Kwon “may flee as he has no desire to appear for questioning”. In other words, Kwon has not been arrested so far, but has only been urged to cooperate with the investigation, although investigators say he refuses to do so. The situation could change dramatically as early as this week.

Recall that Do Kwon was behind the Terra project, the collapse of which in May 2022, among other things, led to a massive correction of the entire crypto market. Terra Classic’s investment was completely devalued, as the altcoin itself fell by more than 99.99 percent in value. A little later, the Kwon team released a new version of the coin, but it did not gain much traction.

We checked the latest data: today, the updated Terra LUNA is valued at $2.76, which is 85.3 percent behind the cryptocurrency's all-time high price. On top of that, the coin hit its price bottom just over three weeks ago and has since managed to rise in value by 80.5 percent.

Terra LUNA’s rate chart for the past month

After all the allegations, the head of Terra continues to deny his guilt – he posted a tweet on Saturday saying he allegedly has no intention of running anywhere or somehow obstructing the investigation. Here’s the relevant line.

I’m not “on the run” or anything like that – for any government agency that has shown interest in communication, my team is willing to cooperate, we have nothing to hide.

Terra creator Do Kwon

According to The Block’s sources, this statement has little to do with reality. Do Kwon is indeed suspected of trying to evade interrogation, with some of Terraform Labs’ top management already having fled the country. So now Do Kwon is about to be detained: and with his possible appearance on the Interpol registry, it is unlikely that he will escape responsibility.

🤩 LOOK FOR MORE ON OUR YANDEX.ZEN!

The collapse of the crypto market due to the Terra collapse was also caused by the fact that many cryptocurrency companies had a lot of Terra Classic and TerraClassicUSD in reserve, which depreciated to almost nothing. Sam Bankman-Fried, CEO of cryptocurrency exchange FTX, had previously proposed a bailout: at the time he said he was willing to financially support important but bankrupt cryptocurrencies.

Now Bankman-Fried has clarified that his exchange has at least one billion dollars to achieve such goals. Here is his rejoinder, cited by Decrypt.

This raises questions of determining how much we should really feel comfortable with. Saying that there is another billion whose alienation is completely unencumbered would certainly be right enough.

FTX chief executive Sam Bunkman-Fried

According to the billionaire, making decisions about bailing out and acquiring certain companies has not been easy. He continues.

We only had a few days to make some of these decisions. The key factors were to support customers and ensure their protection, and to prevent the spread of negative phenomena in the ecosystem.

The FTX rescue of cryptocurrency broker Voyager Digital is one such example. Bankman-Fried explained that they provided “a kind of two-part credit line”, with the first part being at least $70 million. Incidentally, the FTX head’s intentions may not have been as altruistic as they first appeared. He has previously been accused of self-praising on the financial troubles of cryptocurrency companies.


We believe that Terra's creator is unlikely to get away with it. How it will be depends on the activity of the prosecutor's office, but the representatives of the side of the law still have arguments. As it was noted, investors have lost billions of dollars on their investments in LUNA. So now the authorities will have to assess Kwon's role in the story, which will directly affect the extent of Kwon's problems.

What do you think about this? Share your opinion in our millionaire cryptochat. We talk about other topics there as well.