Qishin Tariq · · 1 min readTerraform Labs says accusations against CEO have ‘no reasonable basis’
Troubled crypto firm Terraform Labs said that charges against its founder, Do Kwon, over the company’s US$40 billion collapse were being politicized, South China Morning Post reported.
A spokesperson for the firm issued a statement that Do Kwon was in communication with the authorities through his lawyer. They added that Kwon was “not on the run” and is actively managing Terraform Labs.
The spokesperson also said that the prosecutors have “no reasonable basis” for accusations that Kwon had breached capital-markets law.
In September, a South Korean court issued an arrest warrant for Kwon. The prosecutors had turned to Interpol to locate the CEO after Singaporean police said that he was no longer in the city-state. Interpol has also issued a Red Notice for Kwon.
Terraform Labs’ statement came after prosecutors moved to freeze 3,313 bitcoins, worth about US$65 million at current prices, in response to allegations that the Luna Foundation Guard, a support organization of the Terra stablecoin, was cashing out through these transfers. Kwon denied the accusations in a Twitter thread.
Editing by Miguel Cordon and Lorenzo Kyle Subido
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