SEOUL– Prosecutors asked the foreign ministry Thursday to invalidate the passports of Do Kwon, the CEO of Terraform Labs, and four others as part of a probe into the massive collapse of the firm’s cryptocurrencies in May, sources said.
The blockchain firm has been under investigation for alleged fraud and tax evasion after investors in its cryptocurrencies — TerraUSD and Luna — filed complaints against Kwon in May, accusing him of a Ponzi scheme over the loss of billions of won following the crash of both coins earlier that month.
The Seoul Southern District Prosecutors Office has recently had arrest warrants issued for Kwon and five others, including Terraform founding member Nicholas Platias, in efforts to repatriate them from overseas for investigations.
On Thursday, prosecutors requested the foreign ministry invalidate the passports of Kwon and the rest, except for Platias, who is not Korean.
The foreign ministry plans to accept the request and take necessary administrative procedures, including an order for the five to return their passports.
Once the ministry decides to invalidate a passport, its holder is ordered in a letter to return the passport to his or her Korean address presented on the passport. If the return order is not complied with in two weeks, the foreign ministry could use its power to invalidate the passport.
Source: Yonhap News Agency