The central theses
- The South Korean Foreign Ministry is trying to revoke the passports of several Terraform Labs employees.
- The ministry was asked to do so by prosecutors who recently issued arrest warrants for these individuals.
- Terraform Labs CEO Do Kwon and Finance Manager Mo Han are both named as individuals under investigation.
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South Korean authorities are reportedly planning to revoke the passports of Terra leader Do Kwon and other associates.
Terra employees stand trial
Efforts to arrest Do Kwon intensify.
Yesterday it was reported that arrest warrants had been issued for Do Kwon and five other people behind the Terra blockchain and its failed coins UST and LUNA.
Corresponding Munhwa News, The South Korean Foreign Ministry is now trying to withdraw the passports of five of the six Terraform Labs employees named yesterday, including Kwon.
Terra, its officers and possible employees are being investigated by the Seoul South District Procuratorate’s Financial and Securities Crimes Unit. The State Department reportedly acted at the request of the prosecutor.
A ministry official said, “Among the six arrest warrants issued, requests for invalidation of passports have been received for five people, excluding foreign nationals.”
Terraform Labs Finance Manager Mo Han is named as a target alongside Kwon in today’s report.
The only person ruled out of passport suspension in an arrest warrant yesterday appears to be Nicholas Platias, a founding member of Terraform Labs and a Greek citizen. His current whereabouts are unclear.
Today’s report suggests that the people in question fled South Korea to Singapore. However, Terra employees’ passports remain valid for one month. Therefore, prosecutors are likely to put pressure on subjects to return to South Korea and surrender their passports by then.
The Ministry of Foreign Affairs will send a return notification directly to the individuals. If these communications are not received, they will be posted on the Department’s website for two weeks.
Singapore does not have an extradition treaty with South Korea and therefore has no legal obligation to return those wanted by the authorities. It is unclear what action South Korean prosecutors will take if they do not return voluntarily.
This development represents the latest step in blaming Terra executives for the project’s failure. The blockchain project first collapsed in May when the prices of crypto assets linked to the project fell rapidly. Attempts to revive the project continue anyway.
Disclosure: At the time of writing, the author of this article owned BTC, ETH, and other cryptocurrencies.