South Korean prosecutors file a petition to revoke the passports of Do Kwon and terra founding member The Ecoinomic

According to local news agency gynews.kr, the Joint Financial Securities Crimes Investigation Team of the Seoul Southern District Prosecutor’s Office said it would contact the country’s Foreign Ministry to disable the passports of Terra Luna co-founder Do Kwon and five other project developers.

Prosecutors also plan to contact Interpol and turn the arrest warrant issued by South Korea yesterday into an international arrest warrant.

All terra luna members named in the warrant reside in Singapore, a country that does not have a treaty with South Korea. The individuals targeted in the order include Mo Han and Mo Yu, both Terra Luna employees who are staying with Do Kwon in Singapore. Another named individual is Nicholas Platias of Greek nationality, a founding member of Terraform Labs.

South Korean prosecutors file a request to revoke the passports of Do Kwon and other Terra employees — South Korean prosecutors filed a request to revoke the passports of Do Kwon and other Terra employees

Since the demise of the Terra Classic (LUNC) token — formerly known as Terra (LUNA) — and the Terra USD algorithmic stablecoin (USTC) in May, police have raided 15 locations, including cryptocurrency exchanges and corporate offices that are involved in this issue. The charges involving Terra employees, including Do Kwon, violated the country’s Capital Markets Act, in which prosecutors referred to the Terra Luna ecosystem tokens as “investment confidentiality contracts.”

According to a statement by South Korean prosecutors, Do Kwon allegedly continued to issue LUNA and USTC without informing investors of the risk that the price of the two could plummet together leading to fraud. They point to Do Kwon’s claims, such as “If I deposit Terra into Terraform Labs, I will pay a 19.4% interest,” which Do Kwon knew in advance that investments in the Terra ecosystem were unattainable, but continued to do the same to attract more capital.

The subsequent collapse of Terra Luna caused the same effect on ecosystem projects. One such protocol, Apollo DAO was forced to close the Terra warehouse on Wednesday. The project’s total locked-in value surpassed more than $200 million last year and has now dropped to near zero at the time of publication.