According to local reports stemming from South Korea, the country’s foreign ministry is looking to invalidate the co-founder of Terraform Labs Do Kwon’s passport. The story was published the day after it was reported that Seoul’s Southern District Prosecutors Office issued a warrant for Kwon’s arrest.
Local Report Says South Korean Officials Are Targeting Do Kwon’s Passport
On Wednesday, September 14, 2022, Bitcoin.com News reported on Do Kwon, the co-founder of Terraform Labs, and the report published by Forkast News that said South Korean officials issued a warrant for Kwon’s arrest. Kwon is believed to be living in Singapore at the moment and in a few recent interviews, the Terraform Labs co-founder said he was “devastated” when his crypto project collapsed.
Kwon is accused of shady actions, including allegedly withdrawing $2.7 billion from his $1 parity coin UST before it was depegged to its once-stable value. Kwon, Terraform Labs and his associates face a class-action suit for selling unregistered securities. Following the reported arrest warrant for Kwon, the next day the South Korean newspaper Munhwa published an editorial that says Kwon’s passport might be in trouble.
According to the Munhwa report, South Korea’s Ministry of Foreign Affairs is reportedly looking to revoke Do Kwon’s passport. In the Munhwa report, the reporter mentions that passport invalidation could take 30 days.
Munhwa’s editorial notes also that South Korean law enforcement officers would love Kwon back to South Korea to be questioned. Kwon stated that no South Korean officials have contacted him regarding any investigation during a one-hour interview. Media published mid-August.
In addition to South Korea, a report noted in June that the U.S. Securities and Exchange Commission (SEC) was investigating the crypto firm Terraform Labs and the project’s stablecoin collapse. The following month, another report claimed South Korean prosecutors raided the home of Kwon’s partner and Terraform Labs co-founder Shin Hyun-seong.
Official records further indicate that Kwon dissolved Terraform Labs days before the project’s demise. Three members of the Terraform Labs in-house legal team abruptly resigned amid the blockchain project’s fallout as well.
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