Even a person living under a rock has probably heard about the dramatic downfall of Terra. The project sent shock waves across the globe and even prompted regulators to accelerate the process of rolling out regulations. South Korea, in particular, has been intensively looking into the case.
From probing entities related to Terraform Labs [TFL] to people related to its founder Do Kwon, everyone was on the radar. The world was in the belief that South Korean regulators would bring justice to the masses by arresting Kwon. On the contrary, Kwon affirmed that South Korean investigators hadn’t reached out to him.
Creating history, Terra’s founder Do Kwon decided to appear in an interview with Coinage. Addressing the collapse of his project, Kwon shed light on his relationship with South Korea.
Right after the crash, the whereabouts of Kwon became unknown. Several speculated that he had fled to Singapore to fend off investigators and a possible arrest. Kwon, however, claimed that he moved before the crash took place. The increased death threats against his family urged the rest of them to move as well.
Furthermore, it should be noted that South Korean prosecutors urged the Ministry of Justice to impose a “notification upon arrival” on Kwon. When an urgent investigation on the subject is essential, the investigating force will often be contacted upon the subject’s entry into the nation as part of a “notice upon arrival” step.
Kwon added that it was difficult to decide whether to go back, but if he did, it would be regardless of the results of the inquiry.
Why isn’t Kwon behind bars yet? Community questions
The latest set of events that Tornado Cash and its founder Alexey Pertsev created a divide in the crypto market. While some were glad that Pertsev was arrested, a few others wondered why people like Kwon were still free.
Just last week, the US imposed sanctions on Tornado Cash and the Dutch authorities arrested Pertsev. While he merely wrote the code for the platform and couldn’t avoid bad actors, Kwon designed Terra to fail, the community added.
Speaking about the downfall of Terra, Kwon suggested that he hadn’t thought about that possibility for even a second. He added,
“But if those opportunities existed, then the blame is on the person that presented those vulnerabilities in the first place… I, and I alone, am responsible for any weaknesses that could have been presented for a short seller to start to take profit.”
Currently, several South Korean banks have been being investigated for $6.5 billion worth of suspicious transactions. The regulators in the country have also started heavily scrutinizing several crypto firms. Yet, Kwon remains untethered.