- South Korean prosecutors have alleged that Do Kwon instructed one of his employees to manipulate Terra’s price.
- The prosecutors have cited messenger conversations between the Terra founder and the employee.
- As of today, Kwon’s passport is invalidated.
- The Terra founder is allegedly believed to be living in Europe as an illegal immigrant.
A report published by the South Korean news portal Naver has shed light on some information related to the catastrophic collapse of the algorithmic stablecoin Terra, which further incriminates Do Kwon, the Terraform Labs founder. Kwon is already surrounded by a string of controversies and is believed to be on the run.
Do Kwon instructed his employees to manipulate the price of Terra?
Per the report, the 30-year-old founder instructed one of his employees to “artificially adjust” the price of Terra such that it matches a specific target price. The prosecutor’s office has cited messenger conversations between Kwon and a Terra employee as the source for this allegation.
“I can’t reveal the details, but it was a conversation history where CEO Kwon specifically ordered price manipulation.” said an official from the prosecutor’s office.
Do Kwon’s legal representatives have consistently maintained his innocence in the events that transpired in May, which led to Terra’s collapse.
Kwon believed to be living in Europe illegally
In addition to the price manipulation allegations, South Korean prosecutors revealed that Do Kwon is currently residing in Europe. Given that his passport has been canceled, Kwon’s residency in Europe qualifies him as an illegal immigrant.
The update on Kwon’s whereabouts came two weeks after he was reported leaving Dubai, headed for an unknown location. Price manipulation is a grave allegation and only adds to the legal headache that the Terra founder is already facing, including a $57 million lawsuit that came to light last week.
Kwon currently has multiple outstanding arrest warrants issued by South Korean law enforcement agencies, in addition to a red notice issued by Interpol.
Allegations of being on the run from law enforcement have not stopped Kwon from interacting with his Twitter followers from time to time. While the majority of the crypto industry has been dealing with the fallout of Terra’s collapse, Kwon has described the past few weeks as “one of the most creative periods” of his life.