Terraform Labs has reportedly accused the South Korean authorities of giving in to public pressure when they issued an arrest warrant for its founder, Do Kwon.
Kwon is currently facing legal action following the crash of the cryptocurrency Terra (LUNA) and the stablecoin TerraUSD (UST) faced.
A spokesman for the Singapore-based firm told The Wall Street Journal that prosecutors in Kwon’s home country have overused their powers in prosecuting the ailing crypto developer since Luna is not a security covered by South Korea’s capital markets law.
“We believe, like most in the industry, that Luna Classic is not and never was a security, despite all the changes in interpretation that Korean tax officials have recently adopted.”
The Seoul South District Prosecutor’s Office, which issued the warrant for Kwon’s arrest, says the 31-year-old is “apparently on the run” and is not cooperating with the investigation.
Kwon denies the allegations on Twitter, saying he is not hiding from any government agency and is ready to resolve the allegations against his company over the coming months.
The unnamed spokesman says South Korean authorities have expanded the importance of security and politicized the case under public scrutiny.
“We believe this case has been highly politicized and that the actions of Korean prosecutors demonstrate injustice and a failure to uphold fundamental rights guaranteed by Korean law.”
Since Kwon’s current whereabouts remain unknown, the international police organization Interpol has already issued a Red Notice calling on law enforcement agencies worldwide to help find and arrest the Terra founder.
Featured image: Shutterstock/Tetiana Yurchenko/klyaksun
Source: Crypto News Deutsch