South Korean authorities to strip citizenship of Do Kwon and five of his colleagues

The South Korean Ministry of Foreign Affairs intends to revoke the citizenship of former Terraform Labs CEO Do Kwon after he was charged in court.

Pressure from the South Korean authorities on the founder of Terraform Labs and his five colleagues living in Singapore intensified on September 14, when a South Korean court issued an arrest warrant for Do Kwon. The former co-owner of Terraform Labs was charged with violating the Capital Markets Act.

The Seoul Southern District Financial Crimes Prosecutor’s Office has demanded that the Ministry of Foreign Affairs invalidate the passports of six former Terraform Labs executives. The agency cites the Passports Act, which imposes restrictions on the issuance of certifying documents to persons in respect of whom an arrest warrant has been issued.

It can take up to a month to cancel passports. At the same time, it is clarified that the sanctions will not affect the co-founder of Terraform Labs, Nicholas Plakias, who is a foreign citizen, who is passing through the case.

Recall that the arrest warrant for Do Kwon was issued a few months after the collapse of the Terra ecosystem, which led to the fall of the cryptocurrency market and a wave of defaults and bankruptcies. The prosecutor’s office of South Korea called all employees of the company to testify and ordered the entire directorate of Terraform Labs to notify the entire directorate of Terraform Labs about their arrival and departure from the country.