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Top Headlines for 20 September, 2022

Prosecutors Ask Interpol to Put Red Notice on Terra Founder Do Kwon

As per a report by The Financial Times, South Korean authorities have urged Interpol to issue a “red notice” for Terraform Labs co-founder Do Kwon. The red notice is a request to global law enforcement to find and apprehend an individual pending legal action. In one catastrophic week in May 2022 Terraform Lab’s stablecoin TerraUSD (UST) and the cryptocurrency Luna collapsed and wiped out almost $45 billion in market capitalization.

A spokesperson for Seoul’s Southern District prosecutors’ office disclosed that “We are doing our best to locate and arrest Kwon,” adding that “He is clearly on the run as his company’s key finance people also left for the same country during that time.” Meanwhile Do Kwan has denied any such claims. He tweeted affirming his “full cooperation” with the authorities, and added that ”I will tell you what I am doing and where I am if: we are friends, we have plans to meet, or we are involved in a GPS-based Web3 game. Otherwise you have no business knowing my GPS coordinates.”

Sparkster Reaches $35 million SEC Settlement

Software company Sparkster has agreed to a settlement with the SEC over charges pertaining to the firm’s unregistered 2018 initial coin offering (ICO). Sparkster had raised approximately $30 million from 4,000 investors between April and July 2018 during its ICO. The company had falsely promised its investors that the funds would be used to create a “no-code” software platform for children and that the cryptocurrency would appreciate in value for its holders.

The SEC has sent a letter to Sparkster and its CEO, Sajjad Daya, directing his team to pay more than $35 million. In the settlement Daya will also pay an additional $250,000 civil penalty. The firm has agreed to remove its remaining tokens from all trading platforms and to publish SEC’s order on its website.