Crypto-entrepreneur Do Kwon now also wanted internationally

Do Kwon (31) is his usual light-hearted and arrogant self on Twitter. He appears to be enjoying the cat-and-mouse game with authorities since a South Korean court issued a warrant for his arrest on September 14.

“I make no attempt to hide,” he wrote on September 26 under the Twitter handle @stablekwon. “I’m not a refugee or anything.” And:,“I go for walks and go to malls.” How exactly is not stated.

The programmer and entrepreneur held responsible for billions of dollars in cryptocurrency losses has also been reported to Interpol since Monday, according to Korean authorities. Police services worldwide have therefore been asked to arrest him. Do Kwon also has a house in Singapore, but the police there cannot find him.

Do Kwon is suspected of defrauding investors and investors. He managed to attract a lot of money with his crypto coins terraUSD and luna. Investing in it would be attractive because terraUSD would be a so-called stablecoin. Stablecoins are cryptocurrencies that are said to have a fixed value. In this case, it was promised that 1 terraUSD would always be worth 1 US dollar.

Stablecoins were popular because they made trading between regular financial markets and those in cryptocurrencies easy. This is conditional on the promised link being fulfilled as well. In most cases, this is done by holding some form of collateral in dollars for each crypto coin.

Crazy

Terraform Labs, the company of Do Kwon and its co-founder, claimed to provide this stability in a rather incomparable way. terraUSD was linked to the luna through an algorithm. No one seemed to understand how it worked, and analysts warned about the product. But the promised profits were huge, prompting many investors to come in anyway.

Also read: Scam or ‘just’ loss? It’s hard to say in a volatile crypto market

Do Kwon, who is usually lying on a sofa in the picture, also managed to create hype around his person and company. In 2021, the market for cryptocurrencies like bitcoin was crazy. The value seemed to be constantly increasing and many individuals took a chance for the first time and bought crypto coins. People who believed in the luna and terraUSD used the nickname Lunatics online. Anyone who asked critical questions received a sneer from Do Kwon online.

But from the end of 2021, doubts grew about terraUSD’s coverage and some major investors pulled out. For smaller investors, the blow came in May this year. Then it became clear that the company could not live up to the tying of terraUSD to the ‘real’ dollar. The price of terraUSD and luna then collapsed. More than $40 billion in market capitalization was lost in the crash.

Also read: Dylan (29) paid 4,000 euros, but the promised ‘mining’ of crypto coins would never take place

Other account

When terraUSD and luna became worthless, an estimated 280,000 investors were affected in South Korea alone. In the weeks following the crash, many online forums where they met speculated about suicide. Faith in other cryptocurrencies also took a big hit. Several companies went bankrupt and prices fell sharply. They have barely recovered since.

In an effort to bolster belief in terraUSD’s guaranteed value, Do Kwon also pegged this crypto to bitcoins, the best-known and most valuable cryptocurrency. On Tuesday, the Korean prosecutor confirmed to the Bloomberg news agency that shortly after the crash, an attempt was made to move the involved 3,313 bitcoins (worth about $67 million at current exchange rates) to another account – which is also charged with Do Kwon. Bitcoin wallet is now frozen.

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