Report that Terra founder Do Kwon escaped via Dubai 'is not untrue', says South Korea

Crypto Terra LUNA/USD and terraUSD founder Do Kwon is believed to be in Dubai after fleeing Singapore.

South Korean prosecutors say a report that Kwon left Singapore and flew to Dubai, likely as a stopover to unknown destinations, 'was not untrue' , reports Bloomberg.

Last month, South Korean authorities issued an arrest warrant for Kwon and five others following the collapse of his blockchain platform Terraform Labs.

Kwon's whereabouts need to be clarified, as Singapore police informed South Korean authorities last month that Kwon was no longer in the country.

Kwon later said the allegations that he was on the run were false.

The International Criminal Police Organization has issued a "Red Notice" for Kwon.

Also read: Terra's Do Kwon denies taking $2.7 billion, Michaël Van De Poppe says he deserves jail

Kwon is the lead developer of the two cryptocurrencies whose dramatic collapse has rocked crypto markets around the world.

South Korea's arrest order came amid public outrage in South Korea over the collapse. According to blockchain analytics firm Elliptic, investors in the two coins have lost an estimated $42 billion globally.

In June, TerraForm Labs (TFL) employees said $80 million in company funds were sent to "secret wallets" each month before LUNA collapsed , and Kwon was responsible for this decision.

The Luna Foundation Guard (LFG), a non-profit organization created to support the Terra system, said that due to ongoing legal battles, it has not been in able to reimburse smallholders for its collapsed stablecoin.

Photo courtesy: Terraform Labs

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