Terraform CEO Do Kwon’s Passport Targeted after Arrest Warrant: Report

South Korea’s Ministry of Foreign Affairs ordered the return of passports held by five former Terraform staff members, including Do Kwon and finance officer Han Mo

article-image

Source: Shutterstock

share

key takeaways

  • Do Kwon and others are currently residing in Singapore
  • It will take about a month for passports to become invalid

South Korean prosecutors are now going after Do Kwon’s passport as they attempt to nab the founder behind the failed stablecoin developed by Terraform Labs.

Local outlet Munhwa Ilbo reported on Thursday that prosecutors requested the invalidation of five passports belonging to former Terraform employees of Korean nationality, including Do Kwon and financial officer Han Mo. 

The Ministry of Foreign Affairs immediately moved to order the return of their passports and impose a refusal of new passport issuance, it added.

Earlier this week, a court granted prosecutors arrest warrants for Do Kwon and other staff members currently residing in Singapore. It is believed their information was sent to Interpol’s Red Notice, which permits arrests in multiple jurisdictions and could result in extradition. The warrants are valid for one year.

A Ministry official told Munhwa Ilbo that a total of six arrest warrants were issued. But applications for passport invalidation were made for five people, excluding a foreign national. Requests to invalidate passports and use measures such as the Interpol are tactics used to apprehend the targeted individuals.

It would take about a month for the passport invalidation to come into effect. Until then, prosecutors are expected to coordinate with Singapore authorities for the return of the wanted documents. The local outlet noted that ordinarily when the Ministry of Foreign Affairs notifies an individual to return their passport, upon receipt it appears on the ministry’s website for two weeks.

Terraform Labs and its employees have been subjected to investigations in Seoul in recent months for their roles in the doomed stablecoin TerraUSD (UST). UST dramatically de-pegged from the US dollar in early May, plunging from $1 to $0.15 in less than a week, wiping off billions in market value and leading to hefty investor losses.

At least one investor in central Taiwan who reportedly invested $2 million in the token, committed suicide after the collapse of TerraUSD’s sister token Luna, after he was left with only $1,000 after it crashed 99% in two days.

In his first interview since the stablecoin’s collapse, Do Kwon told Coinage’s Zack Guzman: “In hindsight, I think we should have been more skeptical.”

The Ministry of Foreign Affairs and the Seoul prosecutor’s office didn’t return Blockworks’ request for comment by press time.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg

Research

In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.

article-image

The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally

article-image

While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders

article-image

Trading volumes totalled $154 billion in Q4, including $125 billion in institutional volume

article-image

DeFi on Bitcoin is all the rage right now and Stacks is positioned to benefit

article-image

The Boston Globe reports that lawyer John Deaton is weighing a possible bid

article-image

Ethereum’s Dencun upgrade will enable Uniswap v4 to optimize smart contracts for complex functionality