- Since March 2023, Do Kwon has resided in Montenegro. The possibility of his extradition to the U.S. or his own country of South Korea, to stand trial for fraud exists.
- Do Kwon’s legal team will file another successful appeal, and the Montenegrin High Court will then determine whether to extradite the co-founder of Terraform Labs to South Korea or the United States.
- After hearing arguments from Kwon’s attorneys, the Montenegro Court of Appeals sent the extradition case back to the High Court “for retrial and decision.”
Following a successful appeal by his legal team, Do Kwon, the co-founder of Terraform Labs, will once again be considered for extradition by Montenegro’s High Court in a noteworthy development.
The court must decide whether to extradite Kwon to South Korea or the United States, both of which have requested his extradition because of his suspected involvement in a significant fraud case.
After the Appeals Court of Montenegro overturned a previous ruling, emphasizing the necessity for a new trial and more consideration, the case was brought back before the High Court. The High Court’s initial decision was reversed and remanded for reconsideration when Kwon’s legal team filed an appeal against it.
Extradition Battle: Seoul and Washington Compete for Do Kwon
Seoul and Washington, who claim that Kwon played a major part in Terraform Labs’ demise, which caused investors to lose $40 billion and rocked the world’s cryptocurrency markets, have been fighting for his extradition for months. Even though previous court rulings appeared to clear the way for his extradition, the subsequent decision by the Appeals Court has added fresh hurdles to the proceedings.
Kwon’s Extradition from Montenegro Delayed After Fake Passport Arrest
Do Kwon is currently in Montenegro, where he was arrested in March 2023 for trying to travel with fake documents. He is nearly done serving a four-month prison sentence for using a fake Costa Rican passport. His lawyers have been working to delay the extradition process, and now the final decision is up to Montenegrin authorities.
Hon Chang-joon, Kwon’s business associate, was extradited to South Korea early this year. At the airport in Podgorica, both guys were caught while attempting to catch a trip to Dubai.
U.S. Jury Finds Kwon Guilty of Fraud; SEC Seeks $5.3B Penalty Amid Terraform Labs Collapse and Extradition Debates
A U.S. jury found Kwon and Terraform Labs guilty of fraud in April, and the SEC is recommending $5.3 billion in fines. The instability of Terraform Labs’ algorithmic stablecoin, TerraUSD (UST), caused the company to collapse in 2022, resulting in large financial losses and multiple bankruptcies. To improve collaboration on financial regulation and investor protection, the SEC has been in discussions with Montenegrin authorities.
The nation that files the first extradition request gets precedence under Montenegrin law. Nonetheless, the High Court has stressed the necessity of making sure that any extradition permission is granted willingly and with full knowledge of its ramifications. Different interpretations of the South Korean and American extradition demands have been made throughout the continuing court proceedings.
The worldwide regulatory community and the cryptocurrency industry are closely monitoring the proceedings as the High Court of Montenegro gets set to render a ruling. The resolution of this case will not only decide Kwon’s future but also establish a standard for handling cases of a similar nature in the future.
