The Ministry of Foreign Affairs in South Korea has directed the abruptly crashed Terra ecosystem’s notorious founder – Do Kwon – to return the local passport thereof. This order was released on Wednesday to compel Kwon to return the local passport thereof. The consequence of not returning the passport would be that the authorities will revoke it. This signifies that if the residence of Kwon is within the South Korean jurisdiction there will be no way left for him to quit the country. A week earlier, Interpol issued a red warrant for his arrest but here whereabouts are still unknown and Singapore authorities have also negated the possibility of his presence in Singapore.
South Korean Agencies Instruct Do Kwon to Return His Passport
In this respect, if the Terra founder attempts to apply for a passport, its re-issuance may get rejected till the 13th of September of the coming year, as per the order. The present location of Kwon is even now not sure while a red notice has been issued against the person on the behalf of Interpol. It was considered that the Terra founder is residing somewhere in Singapore, nonetheless, the native police of the jurisdiction recently clarified that this idea was wrong and he is not there.
The purpose of the red notices is that the targeted persons (supposed to be fugitives) should be caught and eighter persecuted or serve a specific sentence according to the committed crime. Do Kwon is the head of the Terra ecosystem which takes into account the Terra (LUNA) – digital token – as well as the stablecoin named TerraUSD (UST). The venue was performing well before May this year. In that month, it was witnessed that the 1:1 peg of UST with the USD was lost.
As a result of that, up to forty billion dollars got vanished, cleaning the life savings of many people who were pursuing good returns over their investments. Apart from the suffering of investors, the crash of Terra additionally pushed many crypto companies toward financial troubles and insolvency. The major names in this respect take into account Vauld and Three Arrows Capital.
Terraform Labs Says that the Authorities Are Expressing Unfairness
In the previous month, an arrest warrant was released by the Seoul Southern District Prosecutors’ Office against Do Kwon. The accusation of the arrest warrant was that the Terra founder had not followed Capital Markets Act operating within South Korean jurisdiction. In the previous week, it was mentioned by Terraform Labs that the company is sure about the unfair dealing of the prosecutors with it. The platform moved on to say that the category of LUNA was not that of security in legal terms.
In this way, it emphasized, the respective token could not be covered within the capital market-related law of the country. According to Terra, the case thereof has turned into a considerably politicized where the prosecutors are showing unfairness along with having a failure in upholding the fundamental rights offered under the law of South Korea, in the words of the firm. Recently, Do Kwon shared a Twitter post noting that he was not planning to run away from the authorities.
