Terra LUNA and LUNC Prices Drop Following Do Kwon Passport Invalidation

6 October 2022, 07:00 GMT+0000
Updated by Ali M.
8 November 2022, 10:26 GMT+0000
In Brief
  • South Korea’s Ministry of Foreign Affairs published a notice saying that it would cancel Kwon’s passport if he did not return it.
  • This could mean that Kwon would be unable to travel anywhere as his passport would be invalid.
  • LUNA and LUNC prices fall following the news.
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South Korea’s Ministry of Foreign Affairs has invalidated the passport of Terra founder Do Kwon passport, saying he has 14 days to return it. Kwon may also see a passport re-issuance request rejected.

Updated 7 Oct., 07:00UTC: A judge has dismissed the arrest warrant for Yoo Mo, saying there was no reason to keep him in custody.

Judge Jin-pyo argued that Mo may not have violated the Capital Market Act, as LUNA has not been classified as a security under South Korean law.

“There seems to be room for legal dispute over whether the LUNA coin is an investment contract security under the Capital Market Act.”

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Dismissing the warrant, the judge said: “It is difficult to see the necessity and significance of the arrest.”

Updated 6 Oct., 10:00UTC: The head of general affairs for Terra, Yoo Mo, has been arrested by South Korean authorities for manipulating and inflating the token’s price using bots, according to a report by Forkast News confirmed by district prosecutor Choi Sung-kook.

Terraform Labs co-founder Do Kwon faces more trouble as he remains out of sight from authorities. South Korea’s Ministry of Foreign Affairs has issued a notice saying that his passport would be canceled, a measure that the government first considered last month. The notice was issued on Oct. 5, saying that it posted the order publicly because of an “inability to deliver” it to Kwon.

Furthermore, Kwon could also face rejection if he were to apply for the passport to be reissued. This could mean that Kwon could potentially be unable to travel anywhere if his passport is invalid. He has 14 days to return the passport.

The decision to cancel the passport is another strong measure that the South Korean government is taking against Kwon. They have been going all out in their bid to bring Kwon back into the country and under their jurisdiction.

As for Kwon, he may be on the verge of facing some serious trouble if he cannot travel anywhere. There have been no comments from Kwon or Terraform Labs yet since the notice was published.

Kwon denied being on the run

One of the most severe actions taken against Kwon was the fact that Interpol issued a red notice against him. This asks law enforcement agencies around the world to locate and arrest him. So far, no developments have taken place, and Kwon remains at large.

He has also denied that he is on the run, tweeting that he was making zero effort to hide and is writing code in his living room. Kwon has also rejected reports that funds used by the Luna Foundation Guard have been frozen, calling the news fake.

Terra ecosystem tanking as developments take place

Amidst all of these developments, the price of several tokens in the Luna ecosystem is falling. Both LUNC and LUNA have fallen, with the former down by over 3% and the latter down by nearly 2%. The Terra ecosystem, in general, has taken a huge hit over the past few months as incidents have taken place.

Terra LUNA price chart
LUNC/USDT: TradingView

FatMan, a Terra Research Forum community member, posted evidence tracing LFG’s bitcoin holdings to KuCoin and OKX. He said that they either belong to Kwon or those who bought them from him during the peg defense arrangement.

FatMan asked Kwon if he did, in fact, deploy those assets to defend the UST peg along with the name of the market maker — saying that there would “be no reason not to unless you are hiding something big.”

Disclaimer

BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.