Terra Founder Do Kwon Still Defiant as South Korea Cancels Passport

Prosecutors in South Korea are said to have obtained evidence that Terraform Labs founder Do Kwon urged an employee to manipulate market prices for the firm's cryptocurrency Terra.

According to the Korean Broadcasting System, Kwon's local passport is now invalid. On October 5, the South Korean Ministry of Foreign Affairs issued a notification demanding Kwon to return his passport or have it revoked.

The troubled entrepreneur is alleged to have departed South Korea at the end of April, stopping in Singapore before heading to an unspecified destination in Europe.

While Kwon was thought to be in Singapore, South Korea filed an arrest order for him. Soon after, an Interpol red notice was issued, effectively requesting that the 31-year-old Terraform Labs founder be located and arrested for apparent violations of capital-markets law.

If Kwon just has one passport, he will be unable to lawfully travel between nations.

Kwon has claimed for months that he is not on the run. Kwon indicated in a recent interview with crypto journalist Laura Shin that he did not want his whereabouts to be known for fear of threats to his personal security.

Kwon, on the other hand, tweeted this morning that he wants to organize a conference or meetup to demonstrate that he is not avoiding anyone. Kwon, who maintains his personal funds are insufficient to repay Terra holders, has asked police officers from around the world to come and has offered to pay for their airfare.

Terraform Labs did not respond to Blockworks' request for comment by the time of publication.

All of this comes as litigation against Kwon mounts in the aftermath of Terra's demise, with investors from around the world seeking compensation for losses of millions of dollars.

In September, 369 investors filed a complaint in Singapore against the crypto creator, saying they lost roughly $57 million owing to Kwon's “fraudulent misrepresentations.”

In response to the lawsuit, a Terraform Labs spokeswoman stated, “There is a fundamental difference between a public market event and fraud.”

“Terraform Labs and the Luna Foundation Guard did nothing illegal; the hazards were well publicized and acknowledged, and the underlying code was open-sourced.” As a result, both parties intend to strongly defend themselves against these unfounded allegations. The evidence is on our side.