Prosecutors Say Terra's Kwon Do-hyung Shows "Clear Signs of Flight... Aiming to Evade Investigation"

Kwon Do-hyung, CEO of Terraform Labs. / Photo by Yahoo Finance YouTube video capture

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[Asia Economy Reporter Yoo Byung-don] The prosecution investigating the Luna and TerraUSD (UST) crash incident believes that Terraform Labs CEO Kwon Do-hyung has been on the run since he left Korea at the end of April this year.

On the 18th, the Seoul Southern District Prosecutors' Office stated, "The arrest warrant for CEO Kwon was issued because there was clear evidence of flight," adding, "Considering the circumstances at the time of departure and his subsequent behavior, it is evident that he fled to Singapore to evade investigation."

The prosecution's position is that CEO Kwon headed to Singapore around the end of April, before the crash of the virtual asset Luna (LUNC) he developed, and that there were signs of flight, such as settling affairs and leaving the country with his family during this period.

Regarding Kwon's statement that he is "fully cooperating with government agencies interested in communication," the prosecution rebutted, "The suspect did not cooperate at all during the search and seizure process and, through his lawyer, expressed no intention to appear before the prosecution immediately, raising concerns that he would not comply with summons, which led to the issuance of the arrest warrant."

Earlier, on the 17th (local time), the Singapore police stated that CEO Kwon was not in their country and that they would assist Korean police within the scope of domestic law and international obligations.

Just hours after this announcement, CEO Kwon posted on Twitter claiming, "I am not on the run."

The prosecution has been investigating CEO Kwon and co-founder Shin Hyun-sung, co-chairman of the board of directors at TMON, since around May, when Luna's price crashed, following complaints and accusations from investors. The investigation involved the Seoul Southern District Prosecutors' Office's Joint Investigation Team on Financial and Securities Crimes and some prosecutors from the Financial Investigation Division 2.

In mid-June, the investigation team obtained arrest warrants for six related individuals, including CEO Kwon, Greek national and Terraform Labs founding member Nicholas Platias, and employee Han Mo, on charges including violations of the Capital Markets Act. Among them, the prosecution requested passport invalidation measures for five Koreans, including CEO Kwon.

The prosecution explained, "We are currently proceeding with procedures to confirm the suspect's whereabouts and secure custody, and will promptly clarify the facts through cooperation with overseas investigative agencies in the future."

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