Do Kwon, the co-founder of Terraform Labs, will be extradited to South Korea instead of the United States, according to a ruling by the Montenegro Appellate Court. This decision resolves a complex legal dispute between the two countries regarding where Kwon should face charges related to the collapse of his cryptocurrency project.
Do Kwon to Face Charges in South Korea Over $60 Billion Crypto Collapse
The Montenegro Appellate Court announced the decision, which upholds an earlier ruling by the High Court in Podgorica. Consequently, Kwon will be extradited to South Korea where awaits charges of negligence in the collapse of his crypto algorithmic stablecoin TerraUSD and its associated token Luna. The disintegration of this project, which was valued at $60 billion, became a major failure that caused a heavy capital loss for investors.
Kwon became an international fugitive and was targeted after a South Korean court issued an arrest warrant in September 2022. It led to the international warrant and Interpol’s involvement in tracking down of the suspect. Previously, in the first half of 2023, the U.S. Securities and Exchange Commission (SEC) accused Kwon of a cryptocurrency fraud that is estimated to worth billions. This was soon coupled with criminal charges from the U.S. Justice Department.
Do Kwon to Face Negligence Charges in South Korea, Montenegro Court Rules
Kwon has been a fugitive since then when he was last arrested in Montenegro in April 2023 after evading deportation to South Korea when he tried to fly to Dubai under a fake passport. In a future judgment, both Terraform Labs and Kwon were declared guilty of fraud by a U.S court. The SEC demanded that the South Korean firm, Terraform Labs, and its founder, Kwon, return $4.47 billion, plus $204 million in fines.
In line with the decision from the Appellate Court, the extradition of Kwon to South Korea is procedurally effective since the South Korean application was in the federal preceding the U.S. application. High Court A ruled that section 61(6)(b) of the 2008 Act is valid under Montenegro’s laws governing international legal assistance and the court agrees with this decision.
With this ruling, Kwon will now stand trial in South Korea, where he will be held legally responsible for the fall of his crypto project. This development brings refreshing culture to scrutiny of cryptocurrency practices. It also affirms the importance of international collaboration in fight on financial crimes.
