Kwon Sends Statement to US WJS
Claims Prosecutors Abused Authority with Excessive Investigation
Dismisses Location Issue as 'Private Matter'
[Asia Economy Reporter Lee Ji-eun] Kwon Do-hyung, the key figure in the cryptocurrency ‘Luna’ crash incident and currently on Interpol’s red notice, claimed that the Korean prosecution is abusing its authority and conducting an excessive investigation.
On the 28th (local time), the US Wall Street Journal (WSJ) reported that Terraform Labs sent a statement saying, "The (Luna) case has become highly politicized, and Korean prosecutors are violating the basic rights guaranteed by Korean law through unfair investigations."
A spokesperson for Terraform Labs stated in the statement sent to WSJ that cryptocurrencies do not qualify as securities and therefore are not subject to the Capital Markets Act.
The prosecution had applied charges of violating the Capital Markets Act, viewing Luna and Terra as ‘investment contract securities’ in which specific individuals or groups expect profits and invest money to receive returns.
In response, the spokesperson criticized the Korean prosecution for expanding the legal definition of securities, saying, "There may have recently been changes in how financial managers in Korea interpret cryptocurrencies, but like most of the industry, we believe Luna is by no means a security."
However, Terraform Labs refrained from commenting on the whereabouts of Kwon, who is suspected of fleeing abroad. The spokesperson said, "Due to ongoing physical threats against Kwon and his family, his location has been treated as a private matter for several months," and reported that there were attempts to trespass at his residences in Korea and Singapore.
Currently, Interpol has issued a red notice, considering Kwon’s flight circumstances to be clear. The Seoul Southern District Prosecutors’ Office, which is investigating the case, has also obtained an arrest warrant for Kwon and is cooperating with Interpol to secure his custody.
On the 21st, Kwon denied the escape allegations through his social media, stating, "I have been in Singapore since December last year," but the prosecution directly refuted his claim, confirming that he indeed fled to Singapore.
According to the prosecution, Kwon dissolved Terraform Labs’ Korean corporation at the end of April, before the Luna incident occurred, departed for Singapore, and has shown no intention to comply with summons for investigation, actively avoiding cooperation with the investigation.
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