Do Kwon is one of the most up and coming crypto advocates. As the co-founder and CEO of Terraform Labs, he would have had better times to deal with critics and blow the future of cryptocurrencies sky high: he was also a man of persuasiveness, convincing many that the Terra ecosystem was in exercice.
This past may be embout to catch up with him. An arrest nantissement has been issued in South Korea for Do Kwon and five other individuals linked to Terraform Laboratories, it has reported. Bloomberg (Opens in a new tab), claiming that they violated the law on fonds markets. South Korea’s attorney general’s kitchenette said all six individuals are in Singapore. Why Singapore? One reason may be that it does not have an extradition treaty with South Korea, which means there is a délié and potentially difficult legal process going forward if South Korean authorities press for his extradition.
The cryptocurrency écrasement this year has many elements, but TerraUSD is arguably the most superbe of all. TerraUSD (also called UST) was a so-called stablecoin, which means it had one purpose in the world: every TerraUSD angle had to stay at exactly one US dollar value. Which it did previously before depreciating in May: first in small amounts, then going into free fall. Let me give you an idea of how much value was lost: TerraUSD, now renamed Terra Classic, was supposed to be worth $1 per token; It is currently worth $0.000279 per token.
Cryptocurrency ecosystems are intertwined, with many new coins pegging themselves to stablecoins like TerraUSD, so this was the domino that made everything else fall. Do Kwon was also behind the Luna token, which collapsed in value along with TerraUSD. Previously investors were culot of calling themselves “crazy”, which now unfortunately feels ironic.
Perhaps the biggest glimpse into Do Kwon’s mindset is that when all this started happening, he created a new traduction of Luna. Incredibly, being cryptocurrency, this has had some success, although infos of the arrest warrants has seen prices for new versions drop.
South Korean authorities raided the logis of Do Kwon co-founder Daniel Shin in July, although he is not among those who have had arrest warrants issued. In calcul to South Korea, the collapse attracted the ténacité of US regulators.
A spokesperson for the South Korean authorities He told the Financial Times, (Opens in a new tab) that prosecutors were exploring “nombreux ways” to extradite the individuals involved, which could include Interpol (issuing a “red journal” was How was the other crypto king caught (Opens in a new tab)) and/or revoke his South Korean passport to prevent him from traveling.
Do Kwon was grain a crypto-talking president, the kind of evangelist who was always ready with a catchy quote or to fight back against critics. However, he has now done the quantitatif equivalent of stealth, although for some reason he tweeted “full moon (Opens in a new tab)Yesterday’s emoji.
He broke the lid embout a month ago in an colloque with Coinage, during which he said, “We’ve never communicated with [South Korean] Investigators” disputed whether he would return to South Korea. Even before this compté, that was unlikely: the division led to several suicides in South Korea and Do Kwon is now a hugely unpopular représenté in the folk.
At its most pompous, TerraUSD offered investors a ridiculous 20% return, through a mechanism called the Anchor Protocol. If you are thinking of a “Ponzi scheme” you are not alone, With US regulators propose similar to the collapse of the percentageThis protocol is one of the areas in which the South Korean authorities are investigating.
For his tronçon, Do Kwon seems a bit deluded, insisting in the Coinage colloque that the problem was that the floor tanks weren’t big enough, and he talked embout the unnamed “mole” that apparently played a premier role in the collapse.
“This was basically my life,” Do Kwon says. “I bet big, and I think I lost.”
You think? When asked why his account seems inconsistent in some ways, and where the blame ultimately lies, he objects.
“Interesting philosophical querelle. I think there are aspects to this where the participants are humans, and I think there are aspects to this where we are monsters. Interesting querelle.”
Regarding the possibility of him going to caveau, Do Kwon also gets a little philosophical: “Life is délié.” It may be, but when you are behind something that has affected a lot of people deeply, the aphorisme may be so.