Do Kwon Faces Possible 'Illegal Immigrant' Status as Passport Deadline Looms

Passport Deadline and Legal Consequences

Terraform Labs co-founder Do Kwon is at risk of having his passport invalidated if he does not return it by October 19. The South Korean Ministry of Foreign Affairs has mandated the return of his passport, citing Article 13 of the Passport Act. Failure to comply will result in the loss of its validity, potentially altering Kwon's legal status.

Ongoing Investigation and Asset Freeze

The South Korean government has intensified its investigation into Kwon, freezing approximately 95 billion won ($67.9 million) of his assets. This move comes as authorities probe his role in the collapse of the Terra ecosystem. Kwon has denied any wrongdoing, despite Interpol issuing a red notice for his arrest last month.

Do Kwon's Response

Kwon has publicly denied the charges, stating on Twitter that his funds have not been frozen and that he is not actively trading. He questioned the motivations behind the allegations, expressing confusion over the situation.

Market Impact

The situation has drawn attention to Terraform Labs and its associated cryptocurrencies. At the time of writing, LUNA is trading at $2.53, showing a 1.30% increase in 24 hours and a 3.87% rise over seven days. The token's 24-hour trading volume has surged by 171.50% to $164.7 million.

Conclusion

The legal challenges facing Do Kwon continue to unfold, with significant implications for his personal status and the broader crypto market. Investors are closely monitoring developments, as the situation could impact confidence in Terraform Labs and its associated projects.