Key Insights:
- Do Kwon faces extradition to either South Korea or the U.S. over cryptocurrency fraud charges.
- Montenegro’s Justice Ministry to finalize Do Kwon’s extradition decision by October 19.
- Terra Luna co-founder Do Kwon’s legal battles continue as Montenegro prepares for extradition decision.
Montenegro is on the verge of concluding the extradition process for Do Kwon, the co-founder of Terraform Labs, with a decision expected by October 19. Justice Minister Bojan Bozovic confirmed that preparations are underway to determine Kwon’s extradition destination, although it remains unclear which country will receive him.
Both South Korea and the United States have submitted formal requests for Kwon’s extradition, following charges related to cryptocurrency fraud. Kwon has been held in Montenegro since his arrest in March 2023 for attempting to travel with falsified documents. As of now, the Justice Ministry has not disclosed whether Kwon will be sent to South Korea or the United States.
Extradition Decision Pending Amid Legal Complexities
Do Kwon’s extradition case has captured international attention, with multiple nations competing for jurisdiction over the Terraform Labs co-founder. After being arrested in Podgorica, Montenegro, in March, Kwon faced charges of forgery and served a six-month sentence in the country. Following the completion of his sentence, Montenegro’s Ministry of Justice has been tasked with deciding his extradition destination.
On October 17, Bozovic confirmed that the decision will be finalized by the end of the week, with all the necessary documentation set to be completed.
Bozovic stated,
“It would have been easier for me if the court had decided which country he should be extradited to.”
However, since the court left the decision to the Ministry, the process is now in its final stages.
Competing Extradition Requests from South Korea and the United States
Do Kwon is facing criminal charges in multiple countries, including South Korea, Singapore, and the United States, related to the collapse of the Terra Luna and TerraUSD cryptocurrencies. The downfall of these digital assets in May 2022 led to billions of dollars in losses for investors, triggering legal actions worldwide.
Both South Korea and the United States have sought Kwon’s extradition, each alleging his involvement in cryptocurrency fraud. South Korea has been particularly keen on prosecuting Kwon, citing his role in the Terra Luna collapse, which affected a significant number of investors in the country. The U.S. has also charged Kwon with fraud, and in September 2023, Interpol issued a red notice for his arrest.
In September, the Supreme Court of Montenegro ruled that the legal conditions for extradition to either South Korea or the U.S. had been met. This decision paved the way for the Justice Ministry to make the final determination on which country would take custody of Kwon.
Terraform Labs’ Legal Challenges Continue
Do Kwon’s legal troubles extend beyond the extradition case. Terraform Labs, the company he co-founded, has been embroiled in legal disputes with the U.S. Securities and Exchange Commission (SEC). In a settlement with the SEC, Terraform Labs agreed to pay $4.47 billion and wind down its operations. This agreement aimed to resolve allegations that the company had misled investors regarding its cryptocurrency products, contributing to the financial losses suffered during the Terra Luna collapse.
Despite these developments, the price of Terra Luna Classic has seen an upward trend since July 2023, even amid a broader market downturn in August. Investors continue to watch the situation closely as Kwon’s extradition and further legal proceedings could have a lasting effect on the cryptocurrency landscape.
Kwon’s case has drawn significant international scrutiny, given the widespread financial losses associated with the collapse of the Terra ecosystem. With a final decision on his extradition expected within days, attention will soon shift to the next steps in the legal proceedings that await him in either South Korea or the United States.
SureTradeGroup.com is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Some of the content on this site is paid content that is not written or posted by our writers or editors and the opinions expressed do not reflect the opinions of this website. Any disagreement you may have with brands or companies mentioned in articles will need to be taken care of directly with those specific brands and companies. The responsibility of anyone who may click links in our articles and ultimately sign up for that product or service is their own. Forex, Stocks, Cryptocurrencies, NFTs and Dogital Tokens are all a high-risk asset, investing in them can lead to losses. Readers should do their own research before taking any action.