Based on a report by the Korean tabloid Munhwa, South Korean authorities urged the nation’s foreign ministry to revoke Do Kwon’s passport on September 15.
Just a day prior to this information coming to light, Kwon, who has been charged alongside five others under the Capital Markets Act, was given an arrest warrant by the Southern District Prosecutors Office of Seoul. With the exception of Nicholas Platias, a Terraform Labs co-founder who is not Korean, the prosecutors additionally requested that their passports be rendered invalid.
Officials will keep putting pressure on Kwon to go back to South Korea because it might take up to 30 days for the passports to be invalidated, according to local media. Do Kwon’s last known location was Singapore, where he has resided for most of the implosion of Terraform Labs, and losing his passport would prevent him from traveling.
The Terra ecosystem eventually collapsed in May after the stablecoin of the company, UST, lost its peg from the US Dollar and lost over $40 billion in worth. Terraform Labs and a sister organization called the Luna Foundation Guard (LFG) tried to bring TerraUSD back to parity, but they finally failed.
Since then, Kwon has published plans to attempt to reconstruct the Terra ecosystem, although he is still facing legal action from incense hodlers.
Last month during an interview, he stressed that he was not in Singapore to elude authorities and that he had not even received any communication from South Korean authorities. He also stated it was difficult to decide whether to go back to South Korea. He continued by saying that how one handles due process is more significant in the sense that the importance lies in how one approaches it as opposed to the fact that one has to make the confrontation itself.
Do Kwon noted that “what we’re going to do is we’re just going to put out the facts as we know them. We’re going to be totally honest and deal with whatever consequences as they may be.”