In the early hours of Monday September 26, Interpol issued a red notice against Luna Classic founder DO Kwon. This issue is due to the fact that Do Kun lost more than 60 billion dollars of investors’ wealth.
Prosecutors in South Korea said Kwon would face charges of embezzling investors’ money. In addition to the charges, Do Kun was charged with violation Capital Markets Act,with many violations.
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This issue has created discussions in the crypto market regarding Terra firm and the future of the algorithmic stable coin. This article details the circumstances surrounding Do Kun and how he ended up on Interpol’s most wanted list.
Early developments leading to Kwon Red’s announcement
Earlier this year, the Terra ecosystem collapsed, something unprecedented in the DeFi space. While the crash has hit the crypto market, other financial markets are also feeling the impact. Crypto analysts believe investors have lost more than $45 billion in wealth.
After the disaster, Terra is under investigation for moving its headquarters from South Korea to Singapore. Tax evasion charges by South Korea. In an interview in Terra’s founder says he is cooperating with investigative agencies in the Terra disaster and has nothing to hide. He also said that Do Kwon is a man of “very high standards.”
However, South Korean prosecutors have flatly rejected Do Kwon’s claims that he is not cooperating and is on the run. As a result, Interpol did He issued a red notice. On Terra founder in over 196 countries.
Terra Classic price breakdown and reversal
The price of the Terra Classic continued to drop after the news of the Interpol Red Notice on Do Kwon. Following the announcement, the price of $LUNC dropped almost 20% immediately after the news, causing investors to panic.
The Terra Classic token crash caused the collapse of a high-profile crypto hedge fund called Three Arrows Capital. This issue has also affected many crypto lenders that market LUNC.
But unexpectedly, it has $LUNC. Reversed by price action That there is an increase in the price. According to coinmarketcap.com, LUNC has gained over 50% in the last 24 hours and is currently trading at $0.0003074. Investors should be cautious as it could lead to a typical pump and dump scheme. The crypto community expects further growth in value as Do Kwon’s search intensifies.
What is the future of LUNC?
A South Korean spokesperson explained that the red notice against Kwon sets the wrong priorities for the crypto industry and could cripple future innovation in the market.
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The failure of Terra stablecoin will lead to more regulatory oversight in the crypto market. Reports emerged last week that the Financial Services Committee has passed legislation introducing a two-year ban on the creation and issuance of algorithmically stable coins such as Terra.
Featured image from Pixabay and chart from TradingView.com