Bitcoin / Crypto News / Cryptocurrency / Regulation · September 15, 2022

South Korean Ministry Plans On Revoking Do Kwon’s Passport

According to reports from South Korean media, the foreign ministry of the country is contemplating invalidating the passport of Do Kwon, the co-founder and chief executive of Terraform Labs.

The reports surfaced only a day after it was reported that an arrest warrant had been issued for Do Kwon by the Southern District Prosecutors Office in Seoul.

The issues with Kwon

On September 14th, reports had emerged that a warrant had been issued by South Korean officials for the arrest of the co-founder and CEO of Terraform Labs, Do Kwon.

It is believed that he is currently in Singapore and in some recent interviews, Kwon said that he had been ‘devastated’ due to the collapse of his crypto project.

However, there have been accusations made against Kwon because of some shady actions, such as withdrawing $2.7 billion before the UST stablecoin had depegged.

A class-action lawsuit has also been filed against Kwon, his associates and Terraform Labs for sale of unregistered securities.

After the report of the arrest warrant, another report emerged the next day which said that Kwon’s South Korean passport may be in trouble.

Kwon’s passport

The latest report indicated that the Ministry of Foreign Affairs in South Korea is looking into revoking the passport of the Terraform Labs’ co-founder.

It was further disclosed in the report that it could take about 30 days for the process of passport invalidation to complete.

It was also added that South Korean officials did want Kwon to return to the country so he could be questioned.

Kwon had given an interview back in August, which had been an hour long, and he had stated that he had not been contacted by South Korean officials for any investigations.

SEC

Another essential detail that should be noted is that South Korean officials are not the only one that are investigating Do Kwon and his company.

It had been reported back in June that the US Securities and Exchange Commission (SEC) was also looking into the crypto company Terraform Labs and the reasons that eventually led to the collapse.

Another report had emerged in the following month, which claimed that officials in South Korea had raided the home of Shin Hyun-Seong.

He had also been a co-founder of Terraform Labs and was Kwon’s partner. According to official records, days before the demise of the Terra project, Kwon had actually dissolved Terraform Labs.

Moreover, three members of the in-house legal team of Terraform Labs had also resigned rather abruptly amidst the fallout of the blockchain project.

The collapse of Terra had shaken the entire crypto market when it occurred back in May, which saw the UST stablecoin as well as the LUNA token go down to almost zero.

The collapse wiped out a massive amount of money from the crypto market and resulted in losses for its investors.

In the wake of the collapse, many companies were forced to file for bankruptcy and this has drawn the attention of regulatory authorities all over the world.