South Korea Requests Interpol’s Assistance in Extraditing Terraform Labs Co-Founder
The National Police Agency of South Korea has officially reached out to the International Criminal Police Organization (Interpol) for help in bringing back Kwon Do-hyeong, the co-founder of Terraform Labs, to South Korea. The request for extradition comes after Do Kwon won an appeal in a Montenegro court, denying his extradition to the United States.
South Korea’s Request to Interpol
The National Police Agency of South Korea announced on March 7 that it had requested assistance from the Interpol Secretariat in extraditing Mr. Kwon. The agency made this request through the Interpol National Central Secretariat of the Republic of Korea, hoping for support at the Secretariat level. However, they have not yet received a response from Interpol.
In addition to the National Police Agency, South Korea’s Ministry of Justice is also seeking assistance from Interpol. The Ministry’s International Criminal Division and the National Police Agency are actively engaged in repatriating Mr. Kwon through international channels, including Interpol.
“The Ministry of Justice’s International Criminal Division and the National Police Agency are working together to repatriate Mr. Kwon through the International Criminal Cooperation Channel and Interpol’s International Cooperation Line, respectively.” – Officer Lee Yong-sang
Terra’s token, LUNA, is not considered a security in South Korea as ruled by the Southern District Court in Seoul. However, in a lawsuit filed by the U.S. Securities and Exchange Commission against Terraform Labs and Do Kwon, a judge ruled that LUNA is indeed a security. This ruling has implications for the severity of punishment and imprisonment terms if Mr. Kwon is extradited to the U.S. on fraud charges.
Terraform Labs Co-Founder Faces Fraud Charges
Mr. Kwon is facing fraud charges from both U.S. and South Korean authorities in connection with the collapse of the Terra ecosystem in May 2022, which resulted in significant losses for investors. The incident, known as the “Terra Luna Incident,” refers to the sharp decline in the prices of Terra and Luna cryptocurrencies caused by the collapse of their peg with the U.S. dollar. This incident led to estimated losses of over 50 trillion won for investors worldwide, with 200,000 victims in South Korea alone.
Mr. Kwon fled to Singapore in April 2022 before the cryptocurrency crash and was subsequently arrested in Montenegro in March last year for using a fake passport while abroad. He has been detained locally for a year since then and was sentenced to four months in November.
Hot Take: South Korea’s Determination to Secure Extradition
With the possibility of Mr. Kwon returning to Korea emerging following the retrial by the High Court, the Korean government is determined to pursue all available avenues to secure his repatriation. The Ministry of Justice, Ministry of Foreign Affairs, and National Police Agency are coordinating efforts to facilitate Mr. Kwon’s return.
Throughout the legal proceedings, Mr. Kwon has consistently denied the allegations of deliberate fraud against him and Terraform Labs.
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