In an unfolding drama that has captured the attention of the global cryptocurrency community, South Korean authorities are making strides to bring back Do-hyeong Kwon, the CEO of Terraform Labs, to face legal proceedings in his home country. This development follows a series of legal challenges and international cooperation in the wake of the catastrophic collapse of digital currencies Terra and LUNA, orchestrated by Terraform Labs.
In a recent X post, renowned crypto journalist Colin Wu, through Wu Blockchain, disclosed that the National Police Agency of South Korea collaborates with the International Criminal Police Organization (Interpol) to facilitate Kwon’s extradition. The agency contacted Interpol’s Secretariat, seeking “interest and support” to expedite the process, underlining the case’s significance to South Korean law enforcement.
According to a recent report, Lee Yong-sang, an official specializing in international cooperation, detailed the concerted efforts between the Ministry of Justice’s International Criminal Division and the National Police Agency. These efforts aim to navigate the complexities of international criminal cooperation channels to secure Kwon’s return to South Korea.
A notable legal development occurred on March 5 when the Montenegrin Court of Appeals overturned an earlier decision by the Podgorica High Court to extradite Kwon to the United States, sending the case back for retrial. The appellate court recognized that South Korea’s extradition request, dated March 29, preceded the U.S. request by several days, granting priority to the Korean government’s plea.
This legal pivot opens a pathway for Kwon’s potential return to South Korea, igniting the government’s resolve to ensure his extradition. Despite awaiting official confirmation from Montenegro, South Korean authorities, including the Ministry of Justice, Ministry of Foreign Affairs, and National Police Agency, are united to facilitate Kwon’s repatriation.
The controversy stems from the ‘Terra LUNA Incident,’ a financial debacle where the cryptocurrency Terra and its counterpart LUNA suffered a monumental crash, disconnecting from their peg to the dollar. The fallout affected investors worldwide, with estimated losses exceeding 50 trillion won, impacting 200,000 domestic investors alone.
Kwon, who relocated to Singapore shortly before the crash in April 2022, was later apprehended in Montenegro in March of the following year on charges of possessing a forged passport. His arrest has since sparked a complex legal and diplomatic effort to address the aftermath of one of the cryptocurrency world’s most notorious collapses.
