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

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.

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