Prosecutors Respond to Kwon Do-hyung's 'Over-investigation' Claim: "No Response to a Fugitive Suspect"

Terraform Labs Issues Statement Refuting Prosecutor Investigation in The Wall Street Journal

[Asia Economy Reporter Yoo Byung-don] The prosecution investigating the Luna and Terra crash incident has stated that it will not respond to Terraform Labs CEO Kwon Do-hyung's claim that the investigation is "excessive."

On the 29th, the Seoul Southern District Prosecutors' Office issued a statement saying, "The prosecution's basic stance is not to respond individually to the unilateral claims of a suspect who is on the run," and urged, "It is appropriate for the suspect to promptly appear before the prosecution, fully clarify his position, and cooperate with the investigation."

Earlier, on the 28th (local time), a spokesperson for Terraform Labs sent a statement to the US daily The Wall Street Journal, asserting that Luna is not a security subject to the Korean Capital Markets Act, and claimed, "The Luna case has been highly politicized, and the Korean prosecution is violating even the basic rights guaranteed by law through an unfair investigation."

They added, "Although Korean financial authorities may have recently changed their interpretation regarding securities, I believe Luna is not, and never was, a security, as is the case with most in the (virtual asset) industry."

However, the Terraform Labs spokesperson refused to disclose CEO Kwon's whereabouts, explaining, "The location of CEO Kwon is a matter kept confidential due to ongoing and substantial threats against him and his family."

Meanwhile, the Seoul Southern District Prosecutors' Office Luna and Terra investigation team (led by Dan Sung-han, head of the joint investigation unit) recently obtained arrest warrants for CEO Kwon and six others, including CFO Han, on charges such as violation of the Capital Markets Act. They are also pressuring CEO Kwon through measures such as passport invalidation, Interpol red notice issuance, and asset freezing.