South Korea orders Do Kwon to return his passport

The Ministry of Foreign Affairs has ordered controversial Terra founder and crypto fugitive Do Kwon to return his passport within 14 days. If not received, it will be automatically canceled.

Stack of several old and cancelled passports, primarily USA - stock photo

South Korean officials notified the now-infamous founder of Terraform Labs that he is required to hand over his local passport no later than within 14 days. Otherwise, Do Kwon risks his travel document being revoked, which means that, if he is in South Korea right now, he won’t be able to leave the country. Additionally, the application for re-issuance may be rejected if Kwon were to apply until September 13, 2023.

The order issued on Wednesday is another consistent step by South Korean authorities to bring Do Kwon to justice. Earlier in September, Interpol issued a red notice for Terraform Labs CEO as he faces charges of violating the country’s Capital Markets Act. The notice was requested by South Korean prosecutors, who claimed that the entrepreneur was “not cooperating” with the investigation and was “obviously on the run.”

Kwon, whose current whereabouts remain unknown, denied being on a run, saying that he’s “making zero effort to hide.” Terra co-founder also dismissed reports that he tried cashing out $67 million worth of Bitcoin just a day after South Korean prosecutors released an arrest warrant against him.

“There is no “cashout” as alleged, I haven't used kucoin or okex in at least the last year, and no funds of TFL [TerraForm Labs], LFG [Luna Foundation Guard] or any other entities have been frozen,” he tweeted.

Meanwhile, South Korean prosecutors reportedly made the first arrest in the Terra case on October 6, detaining a head of general business operations at Terraform Labs with the surname Yu. The said employee is believed to be a key aide of Do Kwon and is accused of wash trading and price manipulation.