Do Kwon Flees to Serbia to Avoid $40bn Crypto Fraud Investigation"

Interpol fugitive Kwon Do-hyung, who is wanted for questioning in the $40bn collapse of his cryptocurrency project, flew to the Republic of Serbia last month, South Korean prosecutors have said.

The former head of the Singapore-based cryptocurrency company Terraform Labs Pte. has had his passport nullified in an effort to locate and extradite him to South Korea, where he faces multiple charges, including fraud and violation of the Capital Markets Act.

Interpol has issued a “red notice” on Kwon, asking law enforcement worldwide to locate and provisionally arrest him. He is believed to have left his home in Singapore in September, travelled to Dubai, and then to Serbia. It is not confirmed whether Kwon is still in Serbia.

South Korea’s Ministry of Justice is requesting investigative assistance from the Serbian government, according to prosecutor Choi Sung-kook of the Seoul Southern District Prosecutors’ Office. This information has been confirmed by a report from local news agency Yonhap.

The Seoul Southern District Prosecutors’ Office has suspended the statute of limitations on Kwon’s criminal charges as they believe he is on the run to evade the investigation.

Kwon has repeatedly claimed that he is not “on the run” and is open to communicating with the authorities, but has said he will not disclose information on his whereabouts due to concerns about his personal security. He has also claimed that the investigation is politically motivated.

The prosecutors have also requested an arrest warrant to detain Terraform Labs co-founder Shin Hyun-seung, also known as Daniel Shin. However, this request was dismissed by a Seoul court earlier this month, who said Shin is not a flight risk and has cooperated with the investigation.

South Korean prosecutors have been investigating Kwon, Terraform Labs, and some of its former employees since the collapse of the Terra-Luna stablecoin in May. This caused losses to hundreds of thousands of investors in South Korea and around the world.

The collapse of Terra-Luna was a major blow to the cryptocurrency community, causing significant losses for investors and damaging trust in the industry. It is hoped that bringing those responsible to justice will help to restore that trust and prevent similar incidents from occurring in the future.

The Seoul Southern District Prosecutors’ Office is leading the investigation into Kwon and Terraform Labs. It is not yet known what the outcome of this investigation will be, or whether Kwon will be extradited to South Korea to face trial.

Regardless of the outcome, the case serves as a reminder of the importance of due diligence when investing in cryptocurrency and the potential risks involved in this volatile market. It is essential for investors to thoroughly research any projects they are considering backing and to be aware of the potential pitfalls and scams that can arise in the world of cryptocurrency.