10 days ago 1 min read

Increased Efforts By South Korea To Have Terra-Founder Luna's Extradited Due Crypto Controversy

south korea-terra luna-do kwon-luna-sec

Prosecutors in South Korea are working harder to extradite Kwon Do-hyung, better known as Do Kwon, and five other Terraform Labs employees back to their home country so they may face fraud charges relating to the now-defunct Terra-Luna stablecoin.

Terraform Laboratories, a Singapore-based company, devised the initiative. An arrest order filed in September mentioned Kwon and his associates. In order to speed up their capture and extradition, South Korean prosecutors are now increasing their coordination with their international counterparts and legal organizations. Although the prosecutor's office declined to provide more information on the progress of legal assistance with overseas peers, this will aid efforts to return the accused to Korea.

The Federal Bureau of Investigation and the Southern District of New York prosecutors are also looking into former Terraform employees at the same time as the SEC lawsuit against Terraform and Kwon, who are accused of hosting a "multi-billion dollar crypto asset securities fraud" and defrauding investors. Police in Singapore have started their own inquiry into Terraform Laboratories.

Asserting that the Luna cryptocurrency has never been a financial security, Terraform Labs has denied any wrongdoing. Kwon said he was to blame for the Terra project's failure during his podcast appearance last year but argued there was no fraud.

Daniel Shin, a co-founder of Terraform who is accused of misrepresenting the Luna cryptocurrency and making up to US$100 million by selling the token before it crashed, is under consideration for an arrest warrant, according to the Seoul prosecutor's office.

Shin refuted the allegations, claiming that he had sold the majority of his Luna holdings prior to the price increase and had kept a sizeable portion after the May cryptocurrency crash. However, he refuted claims that he pushed Terra stablecoin as a payment option despite receiving repeated warnings from law enforcement, asserting that he had never been served with such documents. A South Korean court denied the prosecution's plea to have a warrant for Shin's arrest issued in December.

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