Lack of Regulation Create Uncertainty over Do Kwon Prosecution

South Korean Authorities are having trouble building a strong case against Terra founder Do Kwon. According to a report by Bloomberg, the lack of regulations is giving way to disputes on how the Terra tokens should be treated.

Recently, the prosecutor’s office requested that a person connected to the Terraform Labs ecosystem be detained. However, the court denied their request. The judge ruled that it is still up for debate whether the defendant actually broke the South Korean Capital Markets Act, despite what the prosecutors claimed.

The prosecution implied that it is working hard to prove the case, seemingly citing the cases’ challenges. The authorities insist that the lack of precise regulations does not imply that the investigations are over.

Where is the Terra boss, Do Kwon?

Terra chief, Kwon, is accused of violating the Capital Markets Act, although he denies any wrongdoing. Interpol, as well as local South Korean authorities, have an arrest warrant in Kwon’s name. However, Kwon’s whereabouts are still unknown.

Interpol has issued a red notice against Kwon, who continues to insist that he is not in the wrong. Furthermore, in a recent interview with Laura Shin, Kwon said that the red notice is not an arrest warrant. Moreover, Kwon refused to disclose his location, when asked where he was residing. However, there are rumors that he may be in Dubai.

Kwon is facing additional charges that the prosecution has not yet made public. A total of 280,000 people who suffered losses as a result of the Terra catastrophe demanded compensation. In a lawsuit filed by the victims’ attorney, Kwon was accused of engaging in illegal fundraising and fraud.

On the other hand, the crypto markets got a slight relief today, and the Terra tokens also saw a surge. At press time, Luna Classic (LUNC, previously LUNA) was trading at $0.00024691, up by 7.5% in the last 24 hours. Whereas LUNA was trading at $2.48, up by 4.6% in the last 24 hours.