Interpol issues red notice for Terraform Labs founder Do Kwon

The blockchain startup's collapse wiped out $40 billion worth of investments.

naito8 via Getty Images

Following a request by South Korean prosecutors, Interpol has placed Terraform Labs founder Do Kwon on a "red notice" list, TechCrunch has reported. That will create a request for law enforcement agencies around the world to arrest Kwon following his blockchain company's collapse that took $40 billion from investors with it.

After Korean authorities issued an arrest warrant for Kwon last week, he tweeted that he was "not on the run" or "anything similar." However, prosecutors said that they believed Kwon left Korea to "evade investigation" as he told them through his lawyers that he didn't intend to appear before questioning. "He is clearly on the run as his family members and the company's key finance people also left for the same country [Singapore] at the same time," they said.

Kwon and other Terraform Labs' employees are under investigation for financial fraud and tax evasion following the collapse of its stablecoins, TerraUSD and Luna. The investors, many of whom lost their life savings following the collapse, filed complaints accusing him of running a Ponzi scheme. The crash of the Luna token also played a roll in the collapse of the crypto hedge fund Three Arrows Capital.