Montenegro Court Rules in Favor of Do Kwon's Extradition to South Korea
By: Isha Das
Terraform Labs co-founder and fraudster Do Kwon is set to be extradited from Montenegro to South Korea following a ruling from the Balkan nation's court of appeals. The court's decision comes after a year-long legal process and a series of appeals that resulted from competing extradition requests from both the United States and South Korea.
The Appellate Court upheld the Higher Court's June decision to prioritize South Korea's extradition request over that of the U.S., citing the chronology of the submissions. South Korea's request was submitted first, giving it precedence according to Montenegrin law. This ruling puts an end to the prolonged legal uncertainty surrounding Kwon's fate.
Kwon was initially arrested in Montenegro in March 2023 while attempting to travel to Dubai with falsified travel documents. Consequently, he was sentenced to four months in a Montenegrin prison for document forgery. Following his arrest, both South Korea and the U.S. submitted extradition requests, leading to a legal battle that has garnered international attention.
In November 2023, the Higher Court of Podgorica approved Kwon’s extradition to either South Korea or the U.S., but the final decision was left to the Montenegrin Minister of Justice. Kwon's defense team contested this ruling, leading to a series of appeals which culminated in the recent decision favoring South Korea.
Ongoing Legal Challenges
Do Kwon's legal troubles are far from over. In addition to the extradition proceedings, Kwon and Terraform Labs recently reached a tentative settlement with the U.S. Securities and Exchange Commission (SEC) related to fraud charges. The settlement came after an April jury verdict found both Kwon and Terraform Labs guilty of defrauding investors by misrepresenting the stability of the TerraUSD (UST) stablecoin.
The SEC announced in June that Kwon and Terraform Labs would pay over $4.5 billion in penalties. Despite this settlement, Kwon faces significant legal challenges both domestically and internationally. The U.S. Department of Justice has charged Kwon with criminal fraud linked to the collapse of Terraform Labs, while South Korean authorities have accused him of fraud, bribery, and market manipulation.
The extradition to South Korea will see Kwon face multiple charges related to the collapse of his crypto projects, TerraUSD and LUNA, which imploded in 2022 and resulted in massive financial losses for investors globally. This complex web of judicial proceedings underscores the international ramifications of Kwon's actions and the ongoing efforts by multiple jurisdictions to hold him accountable.
This extradition decision marks a crucial turning point in this high-profile legal saga, transferring the responsibility of justice from Montenegro to Kwon’s home country, South Korea. As Kwon prepares for yet another chapter in his contentious legal journey, the global crypto community remains watchful, anticipating further developments.
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