Singapore-based Terraform Labs said that the South Korean prosecutor's office exceeded the limits of its authority in relation to the arrest warrant for the co-founder of the firm Do Kwon.
TerraForm Labs also stated that the Luna token is not a security, arguing that public pressure may force the prosecutor's office to expand the definition of a security.
South Korean prosecutors are playing a dishonest game
TerraForm Labs representative said in a statement to the Wall Street Journal that South Korean prosecutors are "exceeding their authority." According to the representative:
"We believe that this case has become extremely politicized and that the actions of the Korean prosecutor's office demonstrate injustice and inability to protect the fundamental rights guaranteed by Korean law."
Earlier in September, a South Korean court issued arrest warrants for Kwon and five other people for violating capital markets rules. Shortly after, the Terraform Labs co-founder announced that he had no reason to disclose his location to All and Miscellaneous, since the information was reserved for several people.
Terraform Labs representative in the latest report also refused to disclose Kwon's whereabouts, saying that there are "constant threats to physical security for him and his family" and cooperatives as reasons for hiding his whereabouts. Attempts to infiltrate the founders' residences in South Korea and Singapore.
On September 26, the South Korean prosecutor's office noted that Interpol issued a red warning to Kwon, who still claims that he is not hiding from the authorities.
During attempts to track down the Terraform Labs co-founder, it was claimed that Kwon transferred 3313 BTC from the Luna Foundation Guard (LFG) wallet to KuCoin and OKEx. He rejected the claims.