Jail Kwon Token Pumps As South Korean Authorities Move to Void Terra Founder’s Passport

On Sept. 15, local media outlets reported that the prosecutors looking into the Terra Luna crash had taken steps to revoke the passports of five people, including Terra co-founder Do Kwon and financial officer Han Mo.

The report emphasized that the Ministry of Foreign Affairs ordered these passports be returned and began taking administrative sanctions against them.

Passport to be returned to Singapore

In a translated statement, an official from the Ministry of Foreign Affairs said, “Among the six arrest warrants issued, applications for invalidation of passports have been received for five persons, excluding foreigners. All of them have left for Singapore.”

The report highlighted that the prosecution is anticipated to exert pressure on Kwon and others to return their passports to the Singapore Embassy until the Ministry of Foreign Affairs invalidates the passport completely.

Notice of return order is typically sent by the Ministry of Foreign Affairs and normally takes up to a month.

Kwon meme coin spikes over 500%

On September 14, Be[In]Crypto cited reports about Seoul authorities issuing a warrant for the arrest of Kwon and others. The warrant was reportedly connected to a violation of capital market regulations that led to the $40 billion Terra collapse.

While legal troubles pile up for Kwon and other executives, the JAIL KWON meme token has skyrocketed over 500% in the last ten days on CoinGecko. The rise has been over 200% over the previous 24 hours alone.

At the time of press, the token has maintained a 24-hour range of $0.00044223 and $0.00122915.

Meanwhile, the Terra chief tweeted the symbol of a full moon amid the new woes. 

To recap, back in May, the algorithmic stablecoin Terra USD (UST) de-pegged from the dollar. The debacle that imbalanced the burning and minting mechanism of the ecosystem wiped off over 90% of LUNA’s value.

Days into the debacle, Kwon not only endorsed several community proposals but also looked for investors to rebuild the ecosystem. However, legal action began to mount up for Terraform Labs, the issuing organization of the stablecoin and co-founder Kwon, for alleged fraud.