Terraform Labs defends Do Kwon

Terraform Labs, the firm behind the collapse of the LUNA cryptocurrency, said that South Korean prosecutors' efforts to prosecute the company’s CEO Do Kwonviolate his civil rights.

«We believe that this case has become highly politicized and that the actions of the Korean prosecutors demonstrate injustice and failure to respect basic rights guaranteed by state law,» a Terraform Labs spokesperson told The Wall Street Journal.

Terraform Labs is protesting the arrest warrant issued for Kwon and his five associates. Law enforcement officials claim that Kwon violated the country’s capital markets law after prosecutors recognized Terraform’s Luna cryptocurrency (now Luna Classic) as a security. The company denies the allegations. «Like most in the industry, we believe that Luna Classic is not and never has been a security, despite any changes in interpretation that Korean financial officials may have recently made,» a Terraform Labs spokesperson told WSJ. The company employee refused to disclose Kwon’s current whereabouts, citing reports of threats of physical violence against Kwon and his family.

As a reminder, Interpol issued a «red notice «against Do Kwon. He was believed to be living in Singapore, but local authorities denied this on September 17. Law enforcement agencies are actively searching for the developer, while he boasts on Twitter that he is not going to hide and is ready to cooperate with law enforcement officials. Yesterday, Do Kwon published a post on Twitter denying accusations of sending bitcoins from the Luna Foundation Guard Binance wallet to the balance of KuCoin and OKX crypto exchanges.