South Korea: Authorities accuse Do Kwon of manipulating Luna tokens’ price

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South Korean prosecutors claim that they have obtained additional proof of price manipulation by Terra’s co-founder Do Kwon. Local publication KBS reports that Kwon had once ordered an employee to tamper with the price of LUNA Classic (LUNC) in the months preceding the project’s collapse.

The prosecutors say that the evidence was gleaned from a “messenger conversation” between Kwon and an ex-employee of Terraform Labs. However, the exact details of the conversation between the duo were not made public because of existing court rules.

“I can’t reveal the details, but it was a conversation history where CEO Kwon specifically ordered price manipulation,” said an official from the South Korean prosecutor’s office.

Armed with new facts, the case against Do Kwon and Terraform Labs for breaching South Korean capital market laws could proceed with a renewed sense of urgency. Law enforcement agencies have previously conducted a series of sting operations against Kwon’s associates, with the most prominent being the home raid of Daniel Shin, co-founder of Terraform Labs.

The Joint Financial and Securities Crime Investigation Team of the Seoul Southern District Prosecutor Office also raided the offices of digital asset service providers like Bithumb, Upbit, and Korbit over Terra’s collapse in May.

Despite the mounting legal action against the firm, Do Kwon’s lawyers continue to maintain his innocence, vehemently denying the allegations leveled against him. They argue that Kwon and Terraform Labs were not violating any extant capital laws of the country.

In Kwon’s defense, his lawyers argue that prosecutors have widened the scope of what amounts to a security in a desperate bid to nail a conviction.

New evidence, but Do Kwon is still on the run

Since the start of criminal proceedings against Do Kwon, the embattled founder has failed to honor the invitation of prosecutors. The South Korean government has since voided his passport and issued a warrant for his arrest, but Kwon insists that he is “not on the run.”

Interpol issued a ‘red notice’ to member countries, sparking an international manhunt for Kwon. KBS reports that Kwon could be hiding out somewhere in Europe as a fugitive, given the fact that his passport has been invalidated.

“Do Kwon is now an illegal immigrant, wherever he is, in any country, and he cannot travel legally between countries,” read the report.

The barrage of lawsuits and an international search against Kwon have not hindered him from being active on Twitter.

“Strangely, these last few weeks have been one of the most creative periods of my life,” Kwon tweeted.

Strangely, these last few weeks have been one of the most creative periods of my life. https://t.co/iE6DuwceVF

— Do Kwon 🌕 (@stablekwon) November 3, 2022

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