Authorities claim to have obtained a message conversation in which Kwon allegedly instructed a colleague to manipulate Terra’s market price and disclosed that he is currently based in Europe.
Do Kwon, the co-founder of Terraform Labs, allegedly gave an employee orders to manipulate the pricing of Luna Classic (LUNC) according to a local report from South Korea.
An official from the South Korean prosecutor’s office is quoted in a report by Korean Broadcasting System (KBS) on Nov. 3 as saying that they had gotten a “conversation history” in which “CEO Kwon directly ordered pricing manipulation.”
A “messenger conversation” between Kwon and a former Terraform Labs employee was reportedly used as the basis for the purported proof. The prosecution withheld additional information, stating:
“I can’t reveal details, but it was a conversation history where CEO Kwon specifically ordered price manipulation.”
The price action of Terra’s LUNC, formerly Terra (LUNA), during the last bull market was without a doubt one of the most outstanding across all cryptocurrencies, even though the specifics of the price manipulation are still unknown.
The token value increased by more than 2,800% from $4.18 in late May 2021 to its all-time high of $119.18 on April 5, 2022, before it saw a catastrophic plunge on April 30, According to CoinGecko data.
However, the paper states that Kwon’s agent has persisted in refuting these accusations. Additionally, Kwon and his representatives have in the past refuted claims that they broke the capital markets regulations in South Korea.
The most recent information regarding Kwon’s whereabouts was made public two weeks after it was asserted that he had departed Dubai and was traveling to an unknown location. Kwon is considered to be an illegal immigrant in Europe since his passport has been revoked.
Terraform Labs claimed in September that the prosecution’s case against its co-founder had become “highly politicized” and that they had broadened the concept of a security in response to demands from the general public.