Over recent months, the South Korean government has been monitoring the activities of the Terrafarms Labs, CEO – Do Kwon. In mid May, the entire Terra community crashed and faced a terrible issue affecting the investors and the users. Following the South Korean authorities was seeking to arrest Do Kwon for the huge loss of investors on terraUSD and luna cryptocurrencies.
As the issue is at its peak, the South Korean Ministry of Foreign Affairs sent an official warning to Kwon to surrender his passport to the authorities. The Authorities order Kwon to return his Korean passport within 14 days, short notice.
If he fails, a strict statement is revealed saying, if he fails to hand over his passport, then the government will cancel his passport on the whole. In addition, the MFA also warned he will be facing rejections while requesting for a new passport in the future.
Do Kwon’s South Korean Passport is Invalid
To take deep dive into this issue, it is not a new case of Kwon in South Korea. In Mid of September 14, the judicial court of Korea raised a arrest warrant to Kwon for a fraudulent act. Following, an Interpol issued a red notice was issued on September 28, for a $60B wipeout from the company.
Despite all these serious evolution and also being under the monitor of the authorities, Kwon’s current location remains unknown. These issues made Kwon a popular figure in the country right after the Terra crash.
As the South Korean governments are facing a challenging time, they are restricting all the connections linked with Kwon. Moreover, the South Korean authorities ordered the top two crypto exchanges to freeze over $60 million worth of bitcoin linked to Do Kwon.
Significantly, the regulations are more strict for Do Kwon as the Terra crash affected a large investor community. Thereby resulting in a huge loss over $40 billion in value in just a few days.
Furthermore, the return of the passport is not only for the CEO – Do Kwon , it is also for six more employees of Terraforms Labs.