Robert Steinadler, 8 months ago

Terra: Arrest in South Korea - Do Kwon’s passport revoked

Do Kwon is still on the run, and he keeps playing games via Twitter. In late September, Interpol issued a red notice for him after South Korean investigators asked for help to find out his whereabouts. While investigators still have no success dealing with Do Kwon himself, one of his accomplices got arrested this week.

What is the status of investigations and will justice be finally served?

Passport revoked and funds frozen

It looks like Do Kwon is pretty clever, since he still manages to tweet about the manhunt and is seemingly enjoying himself. But this is only what’s happening on the surface. According to several reports, investigators froze assets worth $40 million that was allegedly connected to Do Kwon and the Luna Foundation Guard. The LFG was supposed to protect the price of LUNC and keep the peg of UST stable.

The even more important news is that Do Kwon is losing his passport. He has 14 days to turn his passport over to authorities otherwise it’s going to be revoked. It is still unclear where he is and it is indeed possible that he never even left the country. By revoking his passport, authorities narrowed down his options for travel to zero.

First arrest in South Korea

The Head of Affairs of Terraform Labs has been arrested in the meantime. According to a report, law enforcement confirmed the arrest, but is not making any statements about the exact details of his arrest.

The man is accused with charges of fraud and market manipulation. According to a story on Yahoo Finance, it is believed that he manipulated the price of LUNC by using a bot network. Should those allegations turn out to be true he and his accomplices could face a long time in jail.

It is estimated that the crash of Terra and UST wiped out approximately $60 billion and caused a contagion effect in the crypto market. What followed was a crisis of CeFi lenders like Celsius, BlockFi, and Voyager who went bankrupt along with the hedge fund Three Arrows Capital. It is unlikely that all victims of the crash will be fully reimbursed. This makes it even more important that the investigations succeed and that Do Kwon and his accomplices have to answer for what they did.

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