South Korean authorities issued an Interpol red notice against Kwon last week concerning the failed DeFi project, claiming he had fled to Singapore.
Prosecutors in South Korea filed a request with the Foreign Ministry to invalidate the passport of Kwon and four others behind the collapsed LUNA and UST.
Financial Supervisory Service Governor Lee Bok-hyun argued that caution should be exercised in passing judgments on whether or not a digital asset can be categorized as a security.
The warrant from the Supreme Prosecutors Office was issued for five others who worked at Terra, with South Korean authorities accusing them of violating the Capital Markets Act.
Embattled digital currency lender Hodlnaut laid off 80% of its workforce amid its current financial plight brought about by the so-called crypto winter but assured customers that steps are being taken towards recovery.
Investigators from the Seoul Southern District Prosecutors Office searched the offices of several digital assets exchanges to seize records and other materials related to the Terra collapse, according to reports.
The bankruptcy of ‘crypto’ hedge fund Three Arrows Capital (3AC) continues to rock the wider digital asset sector, threatening an ever-widening pool of companies that put their trust in a pair of scammers.
The Bank of Russia says that stablecoins are risky because the underlying pool of assets doesn’t belong to the user, and there’s no guarantee of redemption.
The Financial Stability Board has stayed away from the industry but says the recent Terra debacle has made it rethink its stand as it called for strict oversight over Bitcoin.
The order was made in response to an emergency motion by liquidators, who say that 3AC’s founders—Su Zhu and Kyle Davies—have been uncooperative.
South Korea has agreed with the United States to share digital asset crime investigation data and make joint efforts to investigate entities and persons connected to the collapsed Terra blockchain.