27.09.202214:38 Forex Analysis & Reviews: Interpol issues international arrest warrant for Do Kwon

Interpol has issued a Red Notice for Do Kwon, the co-founder of Terraform Labs. The international arrest warrant has been issued several weeks after South Korean authorities issued their own arrest warrant for the crypto businessman. The Red Notice would allow South Korea to request law enforcement worldwide to locate and arrest the person in question. This could then lead to an extradition.

Meanwhile, major cryptocurrencies moved upwards, with BTC gaining more than 7%. Ethereum has advanced as well.

Interpol's warrant followed reports that Do Kwon is no longer living in Singapore and could be on the run from South Korean law enforcement, which is investigating the collapse of Terraform Labs. South Korean prosecutors earlier accused Kwon and his five known associates of violating the country's Capital Markets Act. Kwon is also facing several other charges that were not made public by the prosecutors' office. Following the initial arrest warrant, Do Kwon denied rumors that he was on the run and claimed that he was cooperating with the investigation. Afterwards, South Korean prosecutors stated that Kwon was not in contact with the prosecution

At the moment of writing, the CEO of Terraform Labs did not comment on the reports.

The collapse of Terraform Labs and the failure of the Luna token and its stablecoin triggered a massive sell-off of crypto assets in the spring of 2022. The resulting cryptowinter has put many traders and investors out of action. It remains unclear what will happen next and whether the market would recover by the end of the year. However, the collapse has attracted regulatory attention towards crypto companies, with the CFTC and the US Securities and Exchange Commission planning to regulate the crypto market. Many other countries have also stated they would begin active development of legislation on cryptocurrencies.

On the technical side, the small-scale recovery of BTC has not changed the overall situation in the market. The key area for Bitcoin is the resistance at $20,000. If BTC breaks above this area, it could surge towards $20,540 and $21,410. However, the cryptocurrency would have to break through the resistance at $21,840 and $22,500 to extend the uptrend. If Bitcoin falls under renewed pressure and breaks below the support at $19,520 and $19,103, it would fall back towards $18,625 and $18,100, opening the way towards $17,580.

Ethereum has reached the strong resistance area at $1,400 - a breakout above it would change the situation in the market significantly. If ETH settles above $1,400, it could then begin a retracement towards $1,457, with next targets being $1,504 and $1,550. Renewed pressure on the trading instrument could push Ethereum below $1,343 and the support at $1,270. From there, it could sink towards $1,210 and $1,150, where major market players would come into play once again.