Kwon and five other employees of his company Terraform Labs are wanted by South Korean authorities for alleged violations of the Capital Markets Act. Even Interpol is involved in the manhunt. The charges relate to the collapse of the Terra ecosystem and its TerraClassicUSD (USTC) algorithmic steblecoin. USTC lost its peg to the US dollar in May, leading to the collapse of the entire ecosystem and an investor loss of around $40 billion.

Where is the creator of Terra LUNA

Here’s what Kwon said on the podcast about the allegations against him. The entrepreneur’s remarks are quoted by Decrypt.

We’re a little disappointed with the way prosecutors are trying to create new regulation through criminal proceedings, when that should be the responsibility of legislatures or at least financial regulators.

Terra creator Do Kwon

So Kwon sees the court case against him as a certain form of “regulation” of the crypto market. In reality, however, his quote has nothing to do with reality – the search for the culprits began after Terra collapsed. The project team was incompetent and failed to prevent a financial disaster that even many large cryptocurrency companies suffered because of. There are more than enough grounds for criminal prosecution here.

According to The Block’s sources, Kwon has allegedly not seen a copy of the arrest warrant, and learned about the fact that he was wanted by the media. He continued to insist in interviews that the charges against him are trumped up.

We don’t think any charges relating to the Capital Markets Act apply because the South Korean government’s position is that cryptocurrencies should not be regulated under the Capital Markets Act because they are not securities. These are illegal and politically motivated charges.

Here is a transcript of the conversation with Kwon. We recommend reading it if you want a deeper understanding of the topic and can understand English by ear.

Apart from law enforcement agencies, Do Kwon would also like to see many investors who have lost large sums in Terra. Naturally, one question on everyone’s mind is – where is the suspect actually located? Kwon answers this as follows.

I could answer that, but the problem is that I don’t want there to be a lot of speculation about what country and what city I’ve lived in. The easier it is for people to figure out my whereabouts, the harder it is for me to go on living a normal life.

A "normal life" is hardly possible now that your name is on the Interpol list. The Terra creator said he feared personal persecution by others who may have been affected by the collapse of the project. However, he had already had precedents of someone breaking into his apartment in Singapore.

Another reason for the manhunt is money from the Luna Foundation Guard (LFG), a non-profit organisation that supported the Terra ecosystem. A sum of $65 million belonging to LFG was previously transferred to cryptocurrency exchanges KuCoin and OKX. This has been assessed by the cryptocurrency community as an attempt by Kwon to abscond with the money and finally escape the limelight, with South Korean authorities ordering accounts on the exchanges to be frozen. There are also reports of other transfers from the LFG wallet. Here’s how Kwon himself comments on the situation.

There have been allegations that we transferred LFG funds to the Gemini wallet, they stayed there or something like that. All we did was confirm the transaction with the market maker and transfer the BTC to the address as directed by the market maker.

Do Kwon and the Luna token price chart

Terra’s creator once again emphasised that the allegations of funds theft are false. Another interesting LFG-related issue aired on the podcast was the promises published in May of refunds to Terra investors by the organisation, prioritising those who had invested the least in the project. Kwon said he had no clarity on how long the process might take and likened it to a “goodwill gesture” rather than a “targeted refund”.

Incidentally, Kwon also tried to make excuses for some of his Twitter posts. According to him, he “allowed himself too much” in his remarks and often posted just for fun.

In industry slang, this is called shiatposting. In hindsight, I should have held myself to a stricter standard. Spending less time on social media and interacting with people, I think, would definitely have helped, perhaps allowing me to get a lot more work done.

Here’s an example of one of those tweets.

I don’t debate the poor on Twitter and, sorry, I don’t have any extra change for you.

Tweet Do Kwon

And here’s another tweet – a comment from Kwon regarding his claim that he’s allegedly not in the running.

To be honest, I haven’t run in a while, need to cut back on my calories a bit.

Quotes like this only add more absurdity to the story of the man Interpol is looking for. Kwon is still actively posting on Twitter, so it’s a mystery to many how he hasn’t already been tracked down before today. In any case, it is unlikely that he will be able to hide for much longer – Kwon’s persona has become an all too desirable “prey” for those who want to make sense of the Terra debacle.


In our opinion, even if they wanted to, it is impossible to justify Do Kwon's actions and the arguments about the alleged political motivation of the South Korean government seem very strange given the amount of losses incurred by Terra's investors. The conclusion is that Kwon won't cooperate with the investigation and will continue to hide. So the problem of finding him falls entirely on law enforcement.


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