Do Kwon after Interpol disappear after 40 billion
Terraform’s director, Do Kwon, has made no friends after Luna’s collapse. Now even Interpol is after him.
Do Kwon has been on the radar of the South Korean government for his evasive behavior. He wants to put the controversial entrepreneur to the test, especially after he had Terraform Labs pay out 62 million dollars in cryptos after the arrest warrant.
Because there are quite a few questions about the total collapse of the stablecoin Terra, which was backed by Luna. The collapse of Luna and Terra led to a cascade of bankruptcies and price drops in the crypto world.
Do Kwon “extremely fair”, according to Do Kwon
Do Kwon himself is not aware of any harm and believes that he meets “extreme conditions of honesty”.
The idea behind Terra and Luna was as risky as it was brilliant. UST, Terra, was a stablecoin pegged to the US dollar. Instead of backing with real dollars, the UST was backed by the Luna. If the UST deviated from the dollar, a trading algorithm corrected it by buying or selling the USTs with Lunas. Investing in the UST and the Luna was rewarded with high interest rates.
Hyperinflation of the Luna
This went well for a while, until the crypto market collapsed. The price of the UST fell below the dollar on several crypto exchanges. In response, the algorithm started issuing Lunas frantically. No one wanted these anymore and the Luna collapsed to less than one percent. As a result, the UST was no longer a stablecoin, but completely collapsed. About 200,000 South Koreans had invested in this currency, and even more people elsewhere in the world.
Do Kwon Flee From Furious Investors?
Kwon’s current whereabouts are unknown. He says he is in his apartment in Singapore. He is likely to stay under the radar and not show up in South Korea for the time being, to avoid the furious Korean investors.
