Do Kwon – the man behind the doomed digital currency company Terraform Labs – is now set to lose his South Korean passport as authorities continue to hunt him down like a wild animal.
Do Kwon Falls Deeper into Hot Water
Kwon is the founder of a company that created the failed algorithmic stable coin Terra Luna, which collapsed over the summer after losing its peg and caused traders to lose billions of dollars in wealth over the course of just a few days. While stable coins are often tied to physical collateral (such as gold) or fiat currencies like the U.S. dollar to keep them sturdier than standard digital currencies like BTC or Ethereum, algorithmic stable assets are a whole different ball game in that they only stay strong if people believe in them.
If people stop believing, they run the risk of losing value quickly, and it appears that may have happened in some way with Terra Luna. As a result, many are accusing Kwon and several other people behind the project of pulling the greatest rug pull in crypto history, though it’s unclear, at the time of writing, if the situation came about through illicit actions or malicious intent.
Not long ago, it was announced a warrant had been issued for Kwon’s arrest and that the crypto executive was a fugitive on the run. This is something that Kwon has long stated on social media to be false. He says he’s not on the run and that he has nothing to hide. Thus, he is willing to cooperate with authorities and discuss whatever issues may be at hand.
He has also claimed that he’s not running away. Rather, he’s been in his living room coding, and he’s even gone on several long walks since the time of the Terra Luna collapse.
After, it was announced that many of his assets would be frozen by the South Korean government. Authorities claim to have come across two separate crypto accounts in exchanges like OKEx and Ku Coin. These assets amounted to millions of dollars. Again, Kwon claimed that this was not true and that he hadn’t engaged in any trades with said companies for some time. On social media, he said:
I have no time to trade. No funds have been frozen. I don’t know whose funds they’ve frozen, but good for them. [I] hope they use it for good.
Give Up Your Passport!
Now, it appears South Korea has gone even further in its pursuit of Kwon, claiming he has roughly two weeks (14 days) to give up his passport. Otherwise, it will be fully and officially revoked.
Clearly, the nation considers him a flight risk and wants to make sure he doesn’t leave the country without paying for his alleged wrongdoing.
Source: livebitcoinnews.com
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