Interpol sends out 'red notice' for founder of cryptocurrency Terra

Interpol sends out 'red notice' for founder of cryptocurrency Terra

The international police organisation Interpol has issued a red notice for Do Kwon, the South Korean founder of crypto currency Terra.

The warrant comes as Do Kwon is accused of inflicting losses of $40 billion on investors after the crash of his stablecoin, a court in Seoul announced on Monday.

The Seoul prosecutor's office had asked Interpol to put Do Kwon on its red notice list. It had also requested the South Korean Ministry of Foreign Affairs to revoke his passport.

Do Kwon is co-founder of TerraUSD, the stablecoin whose crash caused investors to lose $40 billion this year and more than $500 billion on the crypto market. A South Korean court issued a warrant for his arrest in mid-September, after the 31-year-old suspect admitted his mistakes in an interview in August.

Do Kwon has since been on the run, although he himself denies this on Twitter.

In April 2022, Terra's value had peaked. According to CoinMarketCap, it was then the fourth stablecoin and the tenth cryptocurrency in terms of market value. A month later, Terra lost more than half of its value in just 24 hours, sparking panic in the nervous crypto asset market.

The stablecoin and its sister token Luna then quickly dropped to zero, leading to losses of more than $500 billion in the market and costing many small investors their life savings. Since then, several criminal investigations have been opened in South Korea.

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