The infamous founder of the bankrupt Terraform Labs will soon be extradited to the United States upon the order of a Montenegran high court.
From Montenegro to the US
The High Court in Podgorica, after thorough consideration of legal and political ramifications, has ruled to extradite Do Kwon to the United States instead of South Korea. This decision comes following an Appeals Court directive seeking clarity on Kwon's extradition fate amidst the backdrop of his arrest in Montenegro back in June 2023.
The ruling on Kwon's extradition follows a reversal of the initial decision by the Appeals Court of Montenegro, which arrived just two weeks prior. Despite Kwon's legal defense appealing the ruling, citing procedural irregularities and breaches of extradition standards, the decision ultimately favors extradition to the United States.
Political Dimensions Of Extradition
A directive from the Appeals Court swayed the High Court's verdict. This directive demanded a conclusive decision regarding Do Kwon's extradition destination, whether South Korea or the United States.
While Kwon's defense advocated for extradition to South Korea, referencing legal precedents and international agreements, Montenegro's Justice Minister Andrej Milović hinted at the decision's political undercurrents. Emphasizing the United States' significance as Montenegro's primary foreign policy partner, the decision underscores the intent to bolster legal frameworks for future extraditions between the two nations.
TerraUSD Collapse and Legal Troubles
The collapse of TerraUSD stands as one of the significant debacles in the digital asset sector, witnessing a staggering loss of $40 billion in 2022. This collapse thrust the firm's executives into the spotlight of legal scrutiny.
Kwon and his associate Han Chang-joon attempted to flee the charges by using counterfeit Costa Rican passports, resulting in their arrest at a Montenegran airport last year. Further investigation revealed additional legal complexities with the discovery of Belgian travel documents during a police search. Despite claiming ignorance of the forgeries and attributing trust to a Singapore-based agency, Kwon's legal entanglements escalated.
Facing Charges in the US
With extradition proceedings underway, Kwon now faces a series of legal challenges in the United States, where a court ruling has already postponed his trial until March 2024.
The charges against him include serious offenses like wire fraud, commodities fraud, securities fraud, and conspiracy charges related to fraud and market manipulation. He faces similar charges in South Korea, highlighting the gravity and international scope of the allegations against him.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
