Prosecutors say Terra founder Do Kwon is ‘on the run’. Binance is warning users against investing in the token.

Do Kwon, the co-founder of stablecoin TerraUSD, is a wanted man in South Korea. As a result, the world’s largest cryptocurrency exchange is warning users that it is not responsible for their choice to invest in Do Kwon’s token.

Last week, a South Korean court issued a arrest warrant for Do Kwon, whose company created the algorithmic stablecoin TerraUSD, as well as its sister cryptocurrency, Luna. The failure of the TerraUSD stablecoin created the domino effect responsible for this summer’s major crypto crash. Prosecutors say Do Kwon is wanted for allegedly violate capital market law.

However, since that warrant was issued, Do Kwon is nowhere to be seen. Do Kown was originally believed to be in Singapore, but Singapore police said: Reuters last weekend that the TerraUSD co-founder was no longer in the city-state.

On Saturday, Do Kwon placed a series of tweets in an effort to address the issues surrounding its current location. Although he declined to share even general details of his location, Do Kwon claimed he was not trying to escape arrest.

“I’m not ‘on the run’ or anything like that — for any government agency that has shown an interest in communicating, we’re fully cooperating and have nothing to hide,” he said in a statement. tweet.

Prosecutors in South Korea disputed these claims the next day, saying Do Kwon was “clearly on the run”. According to the Yonhap Press Agencyprosecutors claimed that Do Kwon flew to Singapore in late April and closed his company’s South Korean branch, Terraform Labs, in an attempt to “evade investigation”.


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And things continue to escalate for Do Kwon. On Mondays the Financial times reported that South Korea had asked Interpol to issue a “red notice” to Do Kwon, which would notify law enforcement officers around the world of the order.

While Do Kwon’s original stablecoin went up in smoke earlier this year, the crypto founder tried to bounce back by relaunch the cryptocurrency through a new token known as Terra 2.0. It was quickly listed on major crypto exchanges where users can still trade the token as of the publication of this article. The arrest warrant issued in South Korea for the founder appears to have had no effect on the exchanges, as journalist Jacob Silverman noted on Twitter.

However, the world’s largest crypto exchange, Binance, has taken action… just not by removing the token. Instead, a prompt appears on the screen when users land on Binance’s webpage to trade Terra 2.0.

“Caution: A South Korean court has issued a warrant for the arrest of the co-founder of Terra 2.0 (LUNA),” the report reads. “Please understand the risks and trade with caution. Binance cannot be held responsible for any trading losses.”

Users then have to click the “I understand” button.

At the time of publication, Terra is trading at $2.60, which is about 40 percent lower than just before prosecutors issued the arrest warrant for Do Kwon last week.