The Ministry of Foreign Affairs of the Republic of Korea demanded that Terraform Labs (TFL) CEO Do Kwon return his national passport within 14 days. If he refuses, the document will be void.
The ministry approved the corresponding prosecutor’s request of the Southern District of Seoul.
In the absence of an appearance, Do Kwon will not be able to leave South Korea, if he is currently in the country.
Applications for passport reissuance by the Terra founder may be rejected until September 13, 2023.
Earlier, on September 14, a South Korean court issued an arrest warrant for Do Kwon and five others.
On September 17, Do Kwon said that he is not “on the run” and is cooperating with law enforcement. He stressed that he does not intend to reveal his location to outsiders.
Later it emerged that Interpol issued a “red notice” for the arrest of the head of TFL. Under the procedure, the request will be received by law enforcement authorities in 195 countries. It was believed that Kwon was in Singapore, but this information was not confirmed.
The collapse of the Terra ecosystem had serious consequences for the digital-asset market. The devaluation of LUNA and the algorithmic stablecoin UST inflicted considerable damage on users of Anchor Protocol.
The incident also affected the solvency of major players in the industry: the crypto-lending platform Celsius was one of the largest holders of UST, and the hedge fund Three Arrows Capital invested about $200 million in LUNA as part of the February token sale.
The situation around the project attracted the attention of regulators in South Korea. The activities of TFL were of interest to the Prosecutor’s Office of the Southern District of Seoul.
In June 2022, investors accused Terraform Labs and Do Kwon personally of making false statements regarding the stability of UST.
In the same month, the company’s CEO stated that he does not consider himself a fraud. He alsodenied the allegations of withdrawing $2.7 billion from the Terra ecosystem before its collapse.
In July, the Seoul Southern District Prosecutors’ Office carried out searches at the home of TFL co-founder Daniel Shin and at the office of an early investor in Dunamu & Partners.
Earlier, the Terra founder refuted information about involvement in the $39.6 million frozen by authorities.
Earlier there was media talk of the movement of 3313 BTC from the Luna Foundation Guard wallet to Binance and to the platforms KuCoin and OKX between September 15 and 18.
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