Terraform Labs call the investigation into Do Kwon ‘politicised’

Terraform Labs (TFL) has accused the South Korean prosecutor’s office of overreach. In a statement to The Wall Street Journal, a company spokesperson stressed that the digital asset LUNA is de jure not a security, and therefore not subject to the relevant legislation.

“We believe the case is highly politicised, and the actions of the Korean prosecutors demonstrate injustice and an inability to uphold the fundamental rights guaranteed by South Korean law,” said TFL.

Terraform Labs suggested that prosecutors broadened the definition of a security in response to public pressure.

In September 2022, the South Korean court issued an arrest warrant for the head of the company Do Kwon and five others. According to media reports, prosecutors asked the Ministry of Foreign Affairs to cancel their passports.

On 17 September Kwon said that he is not “at large” and is cooperating with law enforcement. He stressed that he does not intend to reveal his location to outsiders.

In a discussion with WSJ, a Terraform Labs representative also did not disclose where the head of the company is located. He said this was due to “risk to his physical safety for him and his family.” He added that unknown individuals had attempted to break into Kwon’s residences in South Korea and Singapore.

On 19 September, the Financial Times reported that the South Korean authorities had sent Interpol a red notice request for the head of TFL. Later reports stated that the request had been granted.

The head himself said that he did not find such information on the organisation’s publicly available list. The latter may not publish suspects’ details publicly at the request of law enforcement.

For something that has notice in the name it sure gives no notice

Tried to search it here, found nothing: https://t.co/SuX3aIu6r6

— Do Kwon 🌕 (@stablekwon) September 26, 2022

“There is no ‘cashout’, as claimed. I have not used KuCoin or OKX, at least in the last year. No funds of TFL, LFG or other entities have been frozen,” he wrote.

Earlier in July 2022, South Korean media reported searches at Kwon’s home.

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