Prosecutors in South Korea believe that Do Kwon urged one of his workers to falsify the price of Terra.
Do Kwon, creator of Terraform Labs is further implicated by an article released by the South Korean news website Naver. Kwon is already involved in a number of scandals and is thought to be on the run.
According to the article, the 30-year-old entrepreneur told one of his workers to “artificially change” Terra’s pricing to meet a specified target price. Messenger discussions between Kwon and a Terra employee have been claimed by the prosecutor’s office as the basis for this accusation.
A prosecutor’s office official said, “I cannot disclose the specifics, but CEO Kwon clearly ordered price manipulation in a conversation history.”
Do Kwon’s legal counsel has always maintained his innocence over the May events that caused Terra’s demise.
In addition to the claims of price manipulation, South Korean authorities said that Do Kwon is now located in Europe. Due to the fact that his passport has been revoked, Kwon’s stay in Europe makes him an illegal immigrant.
Two weeks had passed since it was claimed that Kwon had left Dubai en route to an undisclosed place. Price manipulation is a serious claim that adds to the legal difficulties the creator of Terra is already facing, including a $57 million lawsuit that was revealed last week.
Kwon is now subject to various arrest warrants issued by South Korean law enforcement authorities, in addition to an Interpol red alert.
The allegations that Kwon is on the run from law officials have not prevented him from sometimes connecting with his Twitter followers. Kwon has characterized the previous several weeks as “one of the most creative moments” in his life, whereas the bulk of the crypto industry has been dealing with the aftermath of Terra’s collapse.