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.
Following an order from the Seoul Southern District Prosecutor’s Financial and Securities Crime Office to invalidate the passports of 6 people, the South Korean Foreign Ministry has now asked Do Kwon to return their 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 prices of TerraClassic (LUNC) and Terra (LUNA) as both currencies have lost 33% and 50% respectively in just one 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, prosecutors claim that Do Kwon hired lawyers to confirm that he had no intention of appearing before them to answer questions. At present, the authorities are looking for ways to trace his location as they are working with all international agencies to arrest him immediately.
