South Korean Prosecutors Move to Revoke Do Kwon’s Passport
- Do Kwon has been a person of interest since Terra’s collapse in May.
- South Korean prosecutors accused Kwon of failing to inform investors of the possibility of a loss in their investments on the platform.
- Do Kwon previously claimed that Korean authorities had not contacted him.
South Korean authorities have reportedly moved to revoke the passports of Terra founder Do Kwon and those of other key employees. According to local reports, the Seoul Southern District Prosecutor’s Office Joint Financial Securities Crime Investigation Team announced plans to contact South Korea’s Ministry of Foreign Affairs to restrict Do Kwon’s passports as he undergoes investigation. South Korean officials recently issued the Terra founder an arrest warrant. However, prosecutors plan to escalate things by contacting Interpol.
Do Kwon and his associates reportedly reside in Singapore, which does not have an extradition treaty with South Korea. The Terra developer and the other culprits will be mandated to surrender their passports once they are voided and return to South Korea for investigation. Unfortunately for prosecutors, it takes up to a month for a passport to be invalidated. However, South Korean authorities might resort to pressure to convince Kwon and the five other culprits.
Kwon and his accomplices were accused of violating the Capital Markets Act and were asked to surrender themselves for investigation. However, all attempts to convince the crypto developer to return home proved unfruitful.
Police have raided 15 places of interest since the collapse of the Terra Classic (LUNC) token, formerly known as Terra (LUNA), in May. The searches included crypto exchanges and other companies connected to the case.
Prosecutors in South Korea claim that Do Kwon continued to sell USTC and LUNA without warning investors about the possibility that the price of both assets could fall simultaneously, which would have constituted fraud.
Authorities revealed that Kwon made misleading statements such as “If I deposit Terra in Terraform Labs, I will pay an interest of 19.4%.” Prosecutors believe this statement is proof that the Terra founder knew in advance that investments in the Terra ecosystem would not be sustainable, yet he continued to operate to raise more money.
Terra’s crash reportedly wiped off over $40 billion of investors’ funds. Authorities accused Do Kwon of running a Ponzi scheme.