Crypto Exec Wanted In $60b Meltdown Has Passport Frozen

On Thursday, South Korean officials initiated the process of revoking the passport of Do Kwon, founder of Terraform Labs, whose firm was responsible for the stunning $60 billion crash of cryptocurrencies.

One further individual has been apprehended by police in connection with Kwon’s activities.

The South Korean Ministry of Foreign Affairs demanded Kwon hand up his passport by October 19 or risk having it revoked.

In the aftermath of the collapse of terraUSD and luna, which wiped billions off the cryptocurrency market and sent shockwaves across the sector, the conflict between Kwon and South Korean authorities has intensified. Kwon’s business, Terraform Labs, created both of those crypto currencies.

The South Korean government said last month that they had been trying to capture Kwon but were unsuccessful. According to the prosecution, Kwon is the subject of a “Red Notice” from Interpol, the international police agency. These alerts are issued when a person is sought for prosecution or to fulfill a sentence.

However, Kwon claims he is not hiding. We still don’t know where he is.

Prosecutors in Seoul’s Southern District are on the trail of Kwon and have charged him and five others of breaking capital markets legislation and engaging in fraud. The agency informed CNBC on Thursday that they had apprehended one of the Yus they had been hunting for.

Currently, there is no active arrest warrant. However, law enforcement may justify an arrest based on reasonable suspicion that the suspect would attempt to evade capture. Unless a warrant is issued within 48 hours following an arrest, the detainee must be released.

Two cryptocurrency exchanges, KuCoin and OKX, have been asked by South Korean authorities to freeze almost $60 million worth of bitcoin associated with Kwon.

Prosecutors reportedly froze an additional 56.2 billion South Korean won ($39.9 million) worth of Kwon’s digital assets on Wednesday, according to local media.

The cryptocurrency’s creator, though, denied the allegations on Twitter. Kwon has assured us that no money has been seized.

 

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