Turning Tides for Terra's Co-Founder: Do Kwon's Legal Woes
South Korea's accusations against Terra's Do Kwon are called politically motivated, according to a statement from the cryptocurrency executive.
Amidst the tumultuous crypto landscape, Do Kwon, the brainchild behind Terra, faces allegations as severe as they are politically charged. Kwon, now a fugitive in his native South Korea, has vehemently contested the charges against him, labeling them as blatantly biased and insincere.
In an engaging podcast with Laura Shin of Unchained, Kwon vocalized his disagreement with the South Korean prosecutors' approach, stating, "Their attempt to create new regulation through criminal court proceedings should resonate within the job description of the legislature, or at the very least, the financial regulators."
Kwon's Known Cases and Challenges
The collapse of Terra's ecosystem, with the subsequent plummet of TerraUSD stablecoin and the loss of near $40 billion from the market, has stirred up several charges against Kwon. The intricate connection between TerraUSD and LUNA has resulted in an abrupt pump-and-dump situation, leading to the ongoing investigation. Kwon himself remains unaware of the specific charges against him, having only learned about them through the media. He voiced his doubts, stating, "We don't think that any of the charges pertaining to the Capital Markets Act are applicable because the government's stance has been that cryptocurrencies shouldn't be governed by the Capital Markets Act because they're not securities."
Hiding in Plain Sight: The Fugitive's Hideout
Acknowledging speculation about his location, Kwon chose to keep his whereabouts a secret, stating, "I could answer that, but the problem is that I don't want there to be a bunch of guesswork in terms of which country and which city I have been living in." Kwon also eluded to potential threats to his personal security since the crash in May, as well as intrusion into his apartment buildings in Singapore and South Korea.
Bitcoin and the Luna Foundation Guard: The Unresolved Question
Amidst allegations of selling Luna Foundation Guard (LFG) funds, Kwon assured listeners that the Bitcoin holdings, amounting to $65 million, were not sold. He explained that the funds had been moved to crypto exchanges, KuCoin, and OKX, without the intention of selling. Kwon argued, "All we did was to confirm a trade with a market maker and transfer the Bitcoin to an address at the market maker's instruction."
As Timelines loom, questions about Kwon's case, South Korea's investigation, and the controversial capital market actions continue to swirl, keeping the broader crypto sphere on edge. With a January 2026 trial date scheduled and pretrial motions due in July 2025, the crypto community waits in anticipation for the upcoming developments in this high-profile case.
- Do Kwon, the founder of Terra, has denied the charges against him, claiming they are politically biased and insincere, as the South Korean prosecutors attempt to create new regulation through criminal court proceedings.
- The collapse of Terra's ecosystem and the loss of nearly $40 billion from the market have resulted in several charges against Kwon, including an investigation into the intricate connection between TerraUSD and LUNA.
- Kwon voices his doubts about the charges pertaining to the Capital Markets Act, as he believes the government's stance is that cryptocurrencies shouldn't be governed by the Act because they're not securities.
- Rumors have surfaced about Kwon's whereabouts, but he refuses to reveal his location, citing potential threats to his personal security and the desire to prevent guesswork about his whereabouts.
- Kwon has assured listeners that the Bitcoin holdings of the Luna Foundation Guard, amounting to $65 million, were not sold, but were merely transferred to crypto exchanges, KuCoin, and OKX, for a trade with a market maker.
- With a January 2026 trial date scheduled and pretrial motions due in July 2025, the crypto community eagerly awaits the upcoming developments in this high-profile case involving a key figure in the crypto ecosystem.
- Amidst the controversy surrounding Kwon, the crypto exchange landscape continues to evolve, with the emergence of new stablecoins and the increasing importance of blockchain technology in the global financial ecosystem.
