Regulation
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Terraform Labs (TFL) accused the South Korean prosecutor’s office of abuse of power. In a statement to The Wall Street Journal, a company representative emphasized that the LUNA digital asset is not de jure a security, and therefore is not subject to relevant legislation.
“We believe that the case is highly politicized, and the actions of the Korean prosecutors demonstrate an injustice and a failure to uphold the fundamental rights guaranteed by South Korean law,” the TFL said.
Terraform Labs suggested that prosecutors expanded the definition of a security in response to public pressure.
In September 2022, a South Korean court issued an arrest warrant for CEO Do Kwon and five other people. According to media reports, the prosecutor’s office appealed to the Foreign Ministry with a request to cancel their passports.
On September 17, Kwon stated that he was not “on the run” and was cooperating with law enforcement. He stressed that he was not going to disclose his location to strangers.
In a conversation with WSJ, a representative of Terraform Labs also did not tell where the head of the company is. According to him, this is due to “a physical security risk for him and his family.” He added that unidentified individuals tried to break into Kwon’s residences in South Korea and Singapore.
On September 19, the Financial Times reported that the South Korean authorities had submitted a request to Interpol for a “red notice” for the head of the TFL. Later, information appeared in the media that the request was granted.
Kwon himself stated that he “did not find” such information on the organization’s public list. The latter may not place the data of suspects in the public domain at the request of law enforcement agencies.
For something that has notice in the name it sure gives no notice
Tried to search it here, found nothing: https://t.co/SuX3aIu6r6
— Do Kwon 🌕 (@stablekwon) September 26, 2022
Earlier, the media reported that 3313 BTC associated with the Luna Foundation Guard (LFG) were in motion. Funds transferred from LFG wallet on Binance to KuCoin and OKX platforms between September 15th and 18th.
At the request of the South Korean authorities, the KuCoin exchange allegedly froze 1354 BTC. OKX ignored the law enforcement request. Kwon called the data “misinformation.”
What has been probably the most surprising in all this is the amount of misinformation that gets spread.
There is no “cashout” as alleged, i havent used kucoin or okex in at least the last year, and no funds of tfl, lfg or any other entities have been frozen. https://t.co/E1cbKgoqQz
— Do Kwon 🌕 (@stablekwon) September 28, 2022
“There is no ‘cash out’ as claimed. I haven’t used KuCoin or OKX for at least the last year. No funds from the TFL, LFG or other organizations have been frozen,” he wrote.
Recall that in July 2022, South Korean media reported searches in Kwon’s house.
#Terraform #Labs #Calls #Kwons #Investigation #Politicized
