Seoul prosecutors seek revocation of passport for Terra founder Do Kwon

Prosecutors from the Southern District of Seoul have asked the local Ministry of Foreign Affairs to revoke the passports of five people, including Terraform Labs (TFL) CEO Do Kwon. Local media reported.

In its request, the agency cited the Passport Act. It imposes restrictions on issuing identification documents to a person who has been issued an arrest warrant.

The Foreign Ministry is also expected to revoke previously issued passports of the accused.

The sanctions will not affect the co-founder of TFL Nicolas Plakiás, who is a foreign national.

Because revoking passports may take about a month, media suggested that authorities would continue pressuring Kwon to return to South Korea.

According to the latest reports, the Terraform Labs CEO was in Singapore.

On September 14, a Seoul court issued an arrest warrant for Do Kwon and five others on charges including violations of South Korea’s Capital Markets Act.

The Terra ecosystem collapse had serious consequences for the digital-asset market.

In June 2022, investors accused Terraform Labs and Do Kwon personally of false statements regarding the stability of UST.

In the same month, the company’s CEO stated that he did not consider himself a fraud. He alsorefuted allegations of withdrawing $2.7 billion from the Terra ecosystem before its collapse.

In July, the Southern District Prosecutors’ Office conducted searches at the home of Terraform Labs co-founder Daniel Shin and at the office of an early investor in the firm Dunamu & Partners.

Earlier it was reported that the people behind the UST stablecoin has taken an interest in the U.S. Securities and Exchange Commission.

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