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.


Get the day’s top crypto news and insights delivered to your email every evening. Subscribe to Blockworks’ free newsletter now.


Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from Blockworks Research’s Daily Debrief.


Can’t wait? Get our news the fastest way possible. Join us on Telegram and follow us on Google News.


Tags

upcoming event

MON - WED, MARCH 18 - 20, 2024

Digital Asset Summit (DAS) is returning March 2024. This year’s event will be held in our nation’s capital, where industry leaders, policymakers, and institutional experts will come together to discuss the latest developments and challenges in the ever-evolving world of cryptocurrency. […]

upcoming event

MON - WED, SEPT. 11 - 13, 2023

2022 was a meme.Skeptics danced, believers believed.Eventually, newcomers turned away, drained of liquidity and hope.Now, the tide is shifting and it’s time to rebuild. Permissionless II is the brainchild of Blockworks and Bankless. It’s not just a conference, but a call […]

recent research

Cosmos Hub: ATOM Economic Zone

Research

Replicated Security, the Hub’s Validation-as-a-Service offering that went live in March, is the first step in bringing value accrual to ATOM stakers.

/

article-image

Kenya’s central bank doesn’t seem enamored by the idea of a CBDC but hasn’t slammed the door shut yet

article-image

Both Ethereum and Solana have enjoyed vibrant DeFi environments, but this has not yet been the case for Cosmos

article-image

As Japan takes important step forward on stablecoins, industry participants say, proposed US laws around such crypto assets remain in flux

article-image

Stablecoins offer global financial access and on-chain transactions without limitations, while FedNow falls short in terms of utility, global reach and inclusivity

article-image

Connext wants to make using layer-2s and layer-3s a seamless experience

article-image

GameStop has been dabbling in Web3 initiatives since at least January 2022