Users Are Alerted by Binance that they are Purchasing a Fugitive’s Cryptocurrency

by uzair · September 21, 2022

Co-founder of the stablecoin TerraUSD, Do Kwon, is wanted in South Korea. Because of this, the biggest cryptocurrency exchange in the world is alerting consumers that it is not liable for their decision to invest in Do Kwon’s coin.

An arrest order was issued last week by a South Korean court for Do Kwon, whose business produced the algorithmic stablecoin TerraUSD and Luna, its sibling cryptocurrency. The breakdown of the TerraUSD stablecoin set off a chain reaction that led to this summer’s significant crypto meltdown. Do Kwon, according to the prosecution, is wanted for allegedly breaking the capital markets law.

Users Are Alerted by Binance that they are Purchasing a Fugitive's Cryptocurrency

However, Do Kwon has not been located since that warrant was issued. The co-founder of TerraUSD, Do Kown, was initially thought to be in Singapore, but the Singapore Police Force informed Reuters this past weekend that he was no longer there.

Do Kwon tweeted a number of times on Saturday in an effort to address the problems with his current location. Do Kwon asserted he was not attempting to elude capture despite his refusal to provide even the most basic information about his whereabouts.

For any government agency that has showed interest in communicating, we are in full collaboration and we have nothing to hide, he stated in one tweet. “I am not ‘on the run’ or anything like,” he added in another.

The following day, South Korean prosecutors refuted these assertions, stating that Do Kwon was “clearly on the run.” Prosecutors claimed, as reported by the Yonhap News Agency, that Do Kwon travelled to Singapore in late April and closed the South Korean division of his business, Terraform Labs, in an effort to “evade investigation.”

And for Do Kwon, things are only getting worse. The Financial Times reported on Monday that South Korea has requested Interpol issue a “red notice” for Do Kwon so that law enforcement all over the world would be informed of the warrant.

Do Kwon attempted to recover after his original stablecoin went up in flames earlier this year by relaunching the cryptocurrency with a new token known as Terra 2.0. As of the publication of this article, users can still trade the cryptocurrency on the major crypto exchanges where it was swiftly listed. Journalist Jacob Silverman noted on Twitter that the exchanges do not appear to have been impacted by the South Korean warrant issued for the company’s founder.

Users Are Alerted by Binance that they are Purchasing a Fugitive's Cryptocurrency (1)

The biggest cryptocurrency exchange in the world, Binance, has nevertheless acted—just not by delisting the token. Instead, a prompt pops up when users visit Binance’s website to trade Terra 2.0.

The notification states, “Please Note: An arrest order has been issued by a South Korean court against the cofounder of Terra 2.0 (LUNA). “Please be aware of the hazards and trade cautiously. Any trading losses are not the responsibility of Binance.”

The next step requires users to press a “I understand” button.

At the time of publication, Terra’s share price was $2.60, down around 40% from just before Do Kwon’s arrest order was issued by the government last week.

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