15 September 2022
According to local reports stemming from South Korea, the country’s foreign ministry is looking to invalidate the co-founder of Terraform Labs Do Kwon’s passport. The story was published the day after it was reported that Seoul’s Southern District Prosecutors Office issued a warrant for Kwon’s arrest.
On Wednesday, September 14, 2022, Bitcoin.com News reported on Do Kwon, the co-founder of Terraform Labs, and the report published by Forkast News that said South Korean officials issued a warrant for Kwon’s arrest. Kwon is believed to be living in Singapore at the moment and in a few recent interviews, the Terraform Labs co-founder said he was “devastated” when his crypto project collapsed.
However, Kwon has been accused of shady acts such as allegedly cashing out $2.7 billion before the once-stable coin UST depegged from its $1 parity. Kwon, Terraform Labs, and his associates also face a class-action lawsuit for allegedly selling unregistered securities. Following the reported arrest warrant for Kwon, the next day the South Korean newspaper Munhwa published an editorial that says Kwon’s passport might be in trouble.
According to the Munhwa report, South Korea’s Ministry of Foreign Affairs is reportedly looking to revoke Do Kwon’s passport. The local reporter notes in the report that the passport invalidation process could take up to 30 days.
The Munhwa editorial also notes that South Korean law enforcement officials would like Kwon to return to South Korea for questioning. During an hour-long interview with coinage.media published in mid-August, Kwon said South Korean officials had not contacted him about any investigations.
In addition to South Korea, a report noted in June that the U.S. Securities and Exchange Commission (SEC) was investigating the crypto firm Terraform Labs and the project’s stablecoin collapse. The following month, another report claimed South Korean prosecutors raided the home of Kwon’s partner and Terraform Labs co-founder Shin Hyun-seong.
Official records further indicate that Kwon dissolved Terraform Labs days before the project’s demise. Three members of the Terraform Labs in-house legal team abruptly resigned amid the blockchain project’s fallout as well.
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