Extradition Review Halts Do Kwon’s Move to US, Montenegro Court Orders Delay
Amidst the legal tussle surrounding Do Kwon, founder of Terraform Labs and the Terra blockchain protocol, a recent development has emerged in Montenegro.
A Tuesday notice from a Montenegro court has thrown a curveball, ordering a review of the entrepreneur’s extradition to the United States.
The decision to delay Do Kwon’s extradition follows a complaint filed by his defense after a previous court ruling had approved the process. As a result, Kwon will remain in Montenegro, awaiting the conclusion of this review process.
Earlier this year, the South Korean crypto magnate was arrested under accusations of attempting to travel with a forged passport. His arrest raised eyebrows, especially given his prominence in founding Terraform Labs, the entity behind the once-popular Terra blockchain protocol.
Terra’s native token, LUNA, once held a strong position among the top digital assets by market cap, primarily focused on algorithmic stablecoins. However, the project’s collapse in May 2022 significantly impacted the market, leading to numerous affiliated crypto projects declaring bankruptcy.
Authorities in both the United States and South Korea have leveled charges against Do Kwon, including violations of capital markets regulations. If convicted, the severity of the penalties looms large; Dan Sunghan from the Seoul Southern District Prosecution’s financial crime investigation bureau suggested that Do Kwon might face more than four decades of imprisonment across both nations.
The United States Securities and Exchange Commission (SEC) has also charged Do Kwon with orchestrating a multi-billion dollar crypto asset securities fraud, potentially leading to significant financial penalties and disgorgement if proven guilty.
This ongoing legal saga and the unfolding extradition review continue to cast shadows on the once-prominent figure’s future in the crypto space.
