The co-founder of Terraform Labs received a red notice from Interpol, South Korean prosecutors claim, according to a report by Bloomberg.

Following the Red Notice, law enforcement agencies around the world have the authority to locate and arrest Do Kwon. Interpol coordinates police efforts between countries.

Kwon is facing a charge related to the deletion of $60 billion worth of cryptocurrencies he created.

The news came after a South Korean court issued an arrest warrant for Kwon on September 14, and days later, after he claimed he was not at large, South Korean prosecutors asked Interpol to issue a red notice. against him.

The Red Notice has exposed hugely risky practices in the digital asset industry.

Kwon moved to Singapore from South Korea earlier this year and, until recently, his whereabouts showed he was still in the city-state. However, his location is unknown after local police said on September 17 that he was no longer in the city-state.

Kwon and five other Terraform Labs executives face accusations that they violated capital markets laws in South Korea. The Seoul court issued an arrest warrant on September 13 for allegedly violating the nation’s capital markets law.

The crash of the Terra Platform in May led to the historic collapse of the TerraUSD (UST) stablecoin, which has shaken many people’s faith in the digital asset sector. Currently, the crypto sector is still affected by the fall of the stablecoin and the recovery is still in process.

The ecosystem collapsed when TerraUSD, also known as UST, fell apart from its dollar peg and brought down the ecosystem it had built, after which the prices of both tokens fell to near zero, a shadow of the combined $60 billion. that they once controlled.

Additionally, the collapse of Terraform Labs’ associated tokens LUNA and stablecoin UST effectively ushered in the first wave of the crypto winter.

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