South Korea Issues Passport Surrender Order for Terraform Labs CEO Do Kwon
South Korea’s Ministry of Foreign Affairs has officially demanded that Do Kwon, the co-founder and CEO of Terraform Labs, return his passport as part of the ongoing legal proceedings following the catastrophic collapse of the Terra ecosystem.
Deadline Set for Compliance
As reported on October 6, Kwon has been given a 14-day period to surrender his passport to authorities. If he fails to comply, his passport will be canceled, and any future requests for reissuance will be denied. He is not alone in this order, as it extends to a total of six employees from Terraform Labs.
Authorities Intensify Efforts to Locate Kwon
The move comes as South Korean authorities heighten their pursuit of Kwon, who has become a controversial figure after the Terra ecosystem’s collapse, resulting in losses exceeding $40 billion for investors. Following an arrest warrant issued by a Korean court on September 14, Interpol issued a Red Notice on September 26 in an attempt to locate him. As of now, Kwon’s exact whereabouts remain unclear.
Kwon Responds to Legal Actions
Despite the legal pressure, Do Kwon has insisted that he has not been contacted by any authorities concerning the investigation up to this point. Local reports have emerged suggesting that authorities also sought the freezing of $67 million worth of Bitcoin that is allegedly tied to Kwon. He has denied ownership of these funds and has claimed he hasn’t used the cryptocurrency exchanges involved in the report for the past two years.
Terraform Labs’ Stance
In a recent statement, officials from Terraform Labs have characterized the case against Kwon as being driven by political pressures and public sentiment. According to a spokesperson, prosecutors have altered the definitions surrounding securities in response to the collapse of their cryptocurrencies.
Conclusion
The situation surrounding Do Kwon and Terraform Labs continues to evolve, with ongoing investigations and legal actions as South Korean authorities seek accountability for the substantial losses incurred by investors following the Terra ecosystem collapse.
