Do Kwon ordered to return South Korean passport

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The South Korean Ministry of Foreign Affairs demanded that Terraform Labs (TFL) CEO Do Kwon return his national passport within 14 days. In case of refusal, the document will be canceled.

The department granted the relevant request from the Seoul Southern District Prosecutor’s Office.

In the absence of an appearance, Do Kwon will not be able to leave South Korea if he is currently in that country.

Until September 13, 2023, applications for passport renewal from the founder of the Terra ecosystem may be rejected.

Recall, on September 14, a South Korean court issued an arrest warrant for Do Kwon and five other people.

On September 17, Do Kwon stated that he was not “on the run” and was cooperating with law enforcement. He stressed that he was not going to disclose his location to strangers.

Later it became known that Interpol issued a “red notice” about the detention of the head of the TFL. According to the procedure, the law enforcement agencies of 195 countries will receive the request. It was assumed that Kwon is in Singapore, but this information has not been confirmed.

The collapse of the Terra ecosystem had serious implications for the digital asset market. The depreciation of LUNA and the algorithmic stablecoin UST caused significant damage to Anchor Protocol users.

The incident also affected the solvency of large industry players: cryptolending platform Celsius was one of the largest holders of UST, and hedge fund Three Arrows Capital invested about $200 million in LUNA as part of the February token sale.

The situation around the project has attracted the attention of South Korean regulators. The Seoul Southern District Prosecutor’s Office also became interested in the activities of the TFL.

In June 2022, investors accused Terraform Labs and Kwon personally of making false statements regarding the stability of the UST.

In the same month, the company’s CEO said that he did not consider himself a fraud. He also denied accusations of withdrawing $2.7 billion from the Terra ecosystem before its collapse.

In July, the Seoul Southern District Attorney’s Office raided the home of TFL co-founder Daniel Shin and the office of early investor Dunamu & Partners.

Earlier, the founder of Terra denied information about involvement in the $39.6 million frozen by the authorities.

Prior to this, the media reported on the movement of 3313 BTC from the Luna Foundation Guard wallet on Binance to the KuCoin and OKX platforms from September 15 to 18.

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