It should be noted that Do Kwon is currently under an interpol red notice and his whereabouts are still unknown. South Korean prosecutors are looking for Do Kwon to investigate the $60 billion Terra ecosystem implosion in May 2022.
The collapse of the Terra ecosystem led to several bankruptcies and defaults in the crypto space in the following months. Although Do Kwon said he would cooperate with investigative agencies, he failed to appear despite several requests.
As a result, South Korean prosecutors decided to invalidate his passport after the October 19 deadline. If the passport is invalidated, he may become an illegal resident and be subject to deportation.
Earlier on October 10, the South Korean Ministry of Foreign Affairs and the Seoul Southern District Prosecutors’ Office said that they had already asked Do Kwon to surrender his passport last week on October 5. If the passport is not returned within 14 days of this announcement, it will lose its validity according to Article 13 of the Passport Law. Thus, Kwon will become an illegal resident of the place subject to deportation after October 19.
Do Kwon denies the charges
Terra founder Do Kwon has denied the accusations against him and says he has not committed any wrongdoing. In his latest tweet, the Terra founder said that state institutions have been using crypto against people for their political gains.
It’s no surprise that crypto is most popular in countries that weaponize state institutions against their own people for political gain.
Reap what you sow – revolutions start from within.
– Do Kwon 🌕 (@stablekwon) October 5, 2022
Over the past two weeks, prosecutors have frozen Terraforms Lab’s BTC reserves and moved to OKX and KuCoin crypto exchanges. However, Do Kwon said that the frozen funds do not belong to him.
South Korean prosecutors expanded their investigation beyond Do Kwon. They sought five other individuals and associates closer to Kwon. Prosecutors said it was necessary to arrest Terraform Labs director Yoo Mo to further investigate. But the court rejected the warrant, stating, “It is difficult to see that there is a need and plausibility for arrest.“