On September 14, Terra founder Do Kwon and five other individuals received an arrest warrant from the country’s judiciary for violating capital markets law. This arrest warrant comes after the fall of the Terra network in May which pulled down the entire crypto market.
The South Korean Ministry of Foreign Affairs has now asked Do Kwon to return his passport, following the Seoul Southern District Prosecutor’s Office for Financial and Securities Crime’s orders to invalidate the 6 people’s passports.
The recent Tweet by Do Kwon claimed that he is not on the run, to which South Korean prosecutors have claimed that he is obviously on the run. Also, the Singapore police have confirmed that he is not in Singapore anymore.
The legal action against the founder has negatively impacted the TerraClassic (LUNC) and Terra (LUNA) prices as both the currencies dropped by 33% and 50%, respectively, in just a week.
Has Do Kwon Fleed?
Do Kwon’s statement was disapproved by the Seoul Southern District Prosecutors Office, as the officer claims that he has not been in the country since Terra-LUNA collapsed in May. As per the claimed majority of Terra members along with Do Kwon moved out of Singapore followed by the collapse and have cooperated with the investigations.
Additionally, the prosecution claims that Do Kwon appointed attorneys to confirm that he had no purpose of appearing before them to answer questions. At present, the officials are looking for ways to know his location as they are working with all the international agencies to arrest him immediately.