Do Kwon, the founder of Terra, has been given 14 days to return his home passport. Kwon risks losing the passport if it is not returned, and further applications can be denied.
Do Kwon, the contentious creator of the Terra ecosystem that abruptly collapsed in May has been asked by South Korea’s Ministry of Foreign Affairs to hand over his home passport.
The founder of Terra must turn up his passport within 14 days of the order’s issuance, which was made public on Wednesday. If the passport is not returned, it will be canceled, making it impossible for Kwon to leave South Korea.
If Kwon applied for a new passport before September 13, 2023, the order states that his application might be denied.
Kwon is the subject of an Interpol red alert, and it is unknown where he is right now. The local police confirmed that he is not where he was previously believed to be, in Singapore. For people who are wanted for prosecution or to serve time in jail, red notices are published.
Kwon was responsible for the Terra ecosystem, which included the Terra (LUNA) token and the TerraUSD (UST) stablecoin, collapsing in May when UST lost its 1:1 peg to the U.S. dollar and wiping out almost $40 billion in investor equity. The Terra collapse brought Insolvency and financial difficulties, which also affected Three Arrows Capital and Vauld.
The Seoul Southern District Prosecutors’ Office issued a warrant for Kwon’s arrest last month. He’s accused of breaking the nation’s Capital Markets Act.
Terraform Labs stated last week that it believed the prosecution was unfairly targeting LUNA and that it was not security as defined by the nation’s capital markets law. “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,” the company said.
Kwon recently stated on Twitter that he is “not running from any government agency.” Additionally, he has refuted claims that prosecutors have frozen millions of dollars in his finances.
