ccording to Munhwa Ilbo, the Seoul Southern District Prosecutors' Office has requested that the Ministry of Foreign Affairs cancel the passports of five South Korean citizens, along with Kwon and a "financial officer" named Han. The ministry has confirmed receipt of the request.
Individuals with revoked passports must be deported to their country of origin urgently under international law.
The voiding process can take up to a month, but according to the media outlet, the prosecution is anticipated to pressure him and others to give back their passports willfully to the South Korean Embassy in Singapore and return before the ministry completes the process
Meanwhile, more information about the arrest warrant issued by South Korean prosecutors yesterday for Kwon has emerged, with the CEO initially refusing to interact with prosecutors who had made the trip to Singapore.
Kwon now lives in Singapore, where he founded Terraform in 2018. For several months, the Seoul Southern District Prosecutors' Office has continued investigating him and other Terraform-connected individuals for suspected fraud.
However, the investigation seems to have heated up recently, with prosecutors traveling to Singapore to interview him and other Terraform executives. According to KBS, prosecutors issued a warrant after he failed to comply with an invitation to attend a meeting with them.
Details on the other five warrants are scarce, but Chosun confirmed that the individual surnamed Han was Terraform's "head of finance." Han Chang-Joon was previously identified as Terraform's Chief Financial Officer. The only other person named by the South Korean press thus far is Nicholas Platias, who was recognized as a "founding executive" and served as the firm's Head of Research until 2020.
More information about Kwon's charges in his home country has also emerged. Prosecutors appear to believe they have sufficient proof to show that LUNC (formerly LUNA) and other Terra ecosystem coins are "securities.”
Kwon and the other executives were charged with Capital Markets Act violations after deliberation with legal and cryptocurrency experts. This seems to indicate that prosecutors believe Terraform sold unauthorized securities.
Prosecutors are frustrated because no South Korean court or official legal document has ever referred to LUNC - or any other crypto asset - as security.
According to a legal expert named Kim Jeong-Cheol, if the prosecution successfully proved that LUNC was a type of "unregulated security," he could face charges of market price manipulation.
Legal experts also stated that if convicted of such offenses, Kwon could face fines of "three to five times the amount" he is evaluated to have gained from token sales and a prison sentence of a year or more.
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