Do Kwon Ordered to Return His Passport by Authorities
- Do Kwon recently dismissed claims that his wealth was frozen by Korean authorities.
- Terraform labs believe the Do Kwon situation has been politicized and accused prosecutors of giving in to public pressure.
The South Korean Ministry of Foreign Affairs has released an order for embattled Terra CEO, Do Kwon to return his passport to authorities within 14 days of the order. Failure to surrender his passport would lead to an eventual cancellation and a future refusal to reissue.
The Terra boss has become a person of concern following allegations of his involvement in Terra’s collapse in May. Local sources reported that the surrender notice was issued to Kwon alongside other Terraforms employees.
Law enforcement agents in South Korea have stepped up efforts to bring Do Kwon to book. An arrest order was issued for the 31-year-old on September 14, and Interpol issued a red notice on September 26. However, his exact location is unknown, but he was last reported to have taken refuge in Singapore.
At the height of his fame, Kwon was known as the brain behind the Terra ecosystem, which became one of the biggest stablecoins in the crypto market. However, his fortune soon faded after Terra collapsed, wiping off more than $40 billion in investors’ funds. Terra’s struggles also affected other platforms like Three Arrows Capital and Vauld.
Last month, local media claimed that Korean officials had demanded to have $67 million worth of Bitcoin purportedly linked to the disgraced Terra boss frozen. This development gave the Do Kwon drama a new twist. Kwon, however, publicly denied ownership of the money and accused the government of deliberately making false accusations.
Individuals linked to Kwon believe the situation has been politicized as LUNA was not legally a security to be covered by the country’s capital markets law. Terraform labs said,
We believe that this case has become highly politicized, and that the actions of the Korean prosecutors demonstrate unfairness and a failure to uphold basic rights guaranteed under Korean law.
In another Terra-related news, a South Korean judge has dismissed the request for a warrant for Yoo Mo, the head of the business team of Terraform Labs. Judge Hong Jin-Pyo of the Seoul Southern District Court dismissed the warrant less than 48 hours after it was issued, noting that there was no significance in arresting Yoo.
According to reports, the judge took into account Yoo’s South Korean residence, family ties, and existing travel restrictions while making his decision. He also questioned if the LUNA token met the requirements of the Korea Capital Market Act to be considered an “investment contract security.”