Two weeks after an arrest warrant was issued against the Terraform Labs founder, Do Kwon, the crypto firm released a statement accusing the South Korean prosecutors of overreaching their authority.
A spokesman for the company said, “We believe that this case has become highly politicized, and that the actions of the Korean prosecutors demonstrate unfairness and a failure to uphold basic rights guaranteed under Korean law.”
The spokesman also said that the crashed stablecoin Luna wasn’t legally a security, which would mean that it isn’t covered by South Korea’s capital-markets law.
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Currently, the location of Do Kwon is unknown. He was previously known to have fled to Singapore.
The spokesperson said, “Do Kwon’s location has been a private matter for months due to ongoing physical security risks to him and his family,” mentioning that there have been attempted break-ins to Do Kwon residences in both South Korea and Singapore.
The South Korean authorities have previously said that it would be reasonable for Mr. Kwon to appear before the prosecution as soon as possible to “fully disclose his position and cooperate with the investigation.”
The Terraform Labs spokesperson also said that the definition of a security has been expanded in response to the public pressure after the crash of Luna and TerraUSD.
Do Kwon has since relaunched Luna as “Luna Classic” which according to the spokesperson “is not, and has never been, a security, despite any changes in interpretation that Korean financial officials may have recently adopted.”
