South Korea Seeks to Revoke Do Kwon’s Passport Amid Terraform Labs Collapse

South Korea Targets Do Kwon’s Passport

South Korean authorities are taking steps to revoke the passport of Do Kwon, the embattled co-founder of Terraform Labs, in an attempt to force his return to the country. This move follows a request by the Seoul Southern District Prosecutor’s Office for Financial and Securities Crimes to invalidate the travel documents of Kwon and five other individuals implicated in the case.

Background on Do Kwon and Terraform Labs

Do Kwon, currently residing in Singapore, is at the center of a high-profile legal battle. Terraform Labs, the company he co-founded, was behind the Terra ecosystem, which collapsed in May 2022, wiping out approximately $60 billion in value. This collapse triggered a broader crypto market downturn, including the bankruptcy of major players like Three Arrows Capital.

Legal Developments and Passport Revocation

Prosecutors believe Kwon and the other individuals should return to South Korea within 14 days of their passports being revoked. However, the Foreign Ministry has expressed doubts about the necessity of their immediate return, suggesting that convicted individuals could potentially remain in Singapore without their passports.

The six individuals, including Kwon, were issued arrest warrants for violations of the Capital Market Acts. Authorities are now pressuring them to surrender their passports before the revocation process is completed, which typically takes about a month.

Impact on the Crypto Market

The collapse of Terra and subsequent legal actions have severely shaken investor confidence in digital assets. The losses incurred during the crypto market crash in May 2022 have yet to be fully recovered, leaving many investors cautious about the stability of the industry.

Conclusion

South Korea’s efforts to revoke Do Kwon’s passport highlight the ongoing legal fallout from the Terra ecosystem’s collapse. As authorities tighten their grip, the case continues to draw attention to the regulatory challenges and investor risks in the volatile cryptocurrency market.