Do Kwon, the creator of Terra Luna, has referred to the accusations brought against him by South Korean prosecutors as “politically driven” and reaffirmed that he is not hiding.
On Tuesday, he said on the cryptocurrency podcast Unchained, hosted by Laura Shin, “We are a little bit disappointed in the way that prosecutors are trying to create new regulations through criminal court proceedings, when that should be within the job description of the legislature, or at the very least the financial regulators.”
Authorities in South Korea are presently looking for him for allegedly breaking the country’s Capital Markets Act.
The accusations are related to the demise of the Terra ecosystem and Terraform Labs’ algorithmic stablecoin.
The collapse of the entire ecosystem and the loss of $40 billion in value occurred in May when the TerraUSD stablecoin lost its peg to the U.S. dollar.
Kwon asserted that he had not seen a copy of the arrest warrant and that the only sources through which he had learned about the allegations were the media. He is unsure of what other allegations, if any, he is up against besides allegedly breaking the Capital Markets Act.
Since the government has maintained that cryptocurrencies shouldn’t be subject to the Capital Markets Act since they aren’t securities, he added, “We don’t consider that any of the charges connected to the Capital Markets Act are appropriate.” We think that these accusations are politically driven and unjustified.”