Terra co-founder evades arrest: Court denies request

Just over a week ago you could read in the crypto news that the infamous founder of the Terra (LUNA) ecosystem, Do Kwon, was arrested in Montenegro. He allegedly tried to leave the country with forged papers, Montenegro’s interior minister said at the time. It was anything but an easy manhunt, as he’s been hiding since Terra’s dramatic collapse in May 2022.

The Seoul South District Prosecutor’s Office took advantage of this situation and on March 27 requested an arrest warrant for Daniel Shin, the co-founder of Terraform Labs. Reference was made to his involvement in cashing in illegal profits from the sale of LUNA and terraUSD (UST).

Co-founder Terra is not arrested

A local court in South Korea denied the prosecutor’s request to issue an arrest warrant for Shin. This was also the second attempt by the South Korean authorities to handcuff Shin.

In denying the request, the Seoul Southern District court cited unconfirmed allegations and the unlikeliness of Shin posing a flight risk or destroying evidence. This is according to an article from the local media Yonhap.

Currently, Shin is facing multiple fraud allegations, most notably related to allegedly concealing risks associated with Terraform Labs investing in the in-house tokens.

Will Do Kwon be extradited?

A few days ago, authorities from both the United States and South Korea had requested Do Kwon’s extradition. However, the Minister of Justice in Montenegro, Mark Kovac, said at a press conference on Monday that Do Kwon will first have to appear in Montenegro’s court. Only after this could a possible extradition be made.

The authorities in Montenegro want to hold him for up to 30 days, because they say there is a high chance that he will try to escape. However, Do kwon wants to prevent this, and has therefore lodged an appeal.

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