By
Chimamanda U. Martha
April 19th, 2024
In response to media queries, a police officer stated that the task force overseeing Do Kwon’s case had convened “emergency meetings”.
On March 7, South Korea’s National Police Agency and Ministry of Justice sought Interpol’s aid in seeking custody of Terraform Labs co-founder Do Kwon.
According to reports from local news outlet Newsis, the police agency dispatched a letter to Interpol’s General Secretariat. Additionally, a police representative disclosed that the Ministry of Justice had independently solicited Interpol’s assistance.
A police officer, in response to media inquiries, informed The Block that the task force handling Do Kwon’s case convened “emergency meetings”. At the time of reporting, the Ministry of Justice had not provided a comment.
Earlier this week, a Montenegrin court nullified Kwon’s extradition warrant to the US following an appeal filed by his defense attorneys. Allegedly, they argued that the decision was based on inaccurate information, specifically that the US had requested extradition before South Korea.
Previously, Do Kwon succeeded in appeals made on December 14 and February 8 concerning his extradition to either the US or South Korea. The extradition proceedings have been marred by delays and complications.
Kwon’s legal representative, Rodic, has pointed to “numerous unanticipated mistakes” by the lower court in Montenegro as the cause of the prolonged timeline. Rodic doesn’t foresee Kwon’s extradition happening before the end of March, thereby extending the legal process further. Furthermore, the Terra founder’s lawyers have also been preferring extradition to South Korea, instead of the United States.
Terra’s Collapse and Bankruptcy
The collapse of the Terra ecosystem back in May 2022 resulted in the loss of approximately $40 billion in investor wealth within days. Initially arrested in Montenegro last March, Do Kwon faces charges of attempting to leave the country using a fake passport. In November, the authorities arrested Do Kwon and he’s been in prison since then.
Do Kwon faces extradition requests for financial crime charges in both the US and South Korea. Earlier in January, Terraform Labs formally submitted for Chapter 11 bankruptcy protection in the United States. Court filings, lodged in Delaware on Sunday, indicate that the company’s assets and liabilities are estimated to range between $100 million and $500 million. Furthermore, the number of creditors is reported to be between 100 and 199.
Despite these challenges, the Terra community has shown strong resilience to rise back again from the ashes.