Terraform Labs co-founder Do Kwon is lastly set to be extradited to South Korea after a greater than year-long authorized course of in Montenegro.
The Appellate Court docket upheld the Larger Court docket’s June determination to prioritize South Korea’s extradition request over that of the US. The prioritization was based mostly on the order of request submissions, with South Korea’s request arriving first.
Consequently, Kwon will likely be extradited to South Korea to face expenses associated to the collapse of his crypto initiatives, TerraUSD and LUNA, which collapsed in 2022 and resulted in substantial monetary losses for traders globally.
Protracted authorized saga
Kwon was arrested in Montenegro in March 2023 whereas making an attempt to journey to Dubai utilizing falsified journey paperwork. He was sentenced to 4 months in a Montenegrin jail for doc forgery. Quickly after his arrest, each South Korea and the US submitted extradition requests.
In November 2023, the Larger Court docket of Podgorica initially accepted Kwon’s extradition to both South Korea or the US, leaving the ultimate determination to the Montenegrin Minister of Justice. Nonetheless, Kwon’s protection contested the choice, resulting in a collection of appeals and retrials.
In March, the Court docket of Appeals of Montenegro overturned the earlier determination to extradite Kwon to the US and directed a retrial to find out the suitable extradition vacation spot. The Excessive Court docket in the end dominated in favor of South Korea’s request because of priority.
Prison expenses
Along with the extradition proceedings, Do Kwon and Terraform Labs just lately reached a tentative settlement with the US Securities and Trade Fee (SEC) concerning fraud expenses.
The settlement follows an April jury verdict that discovered Kwon and Terraform Labs responsible of defrauding traders by misrepresenting the soundness of TerraUSD. The SEC introduced in June that Kwon and Terraform Labs pays over $4.5 billion in penalties.
Regardless of the SEC settlement, Kwon nonetheless faces important authorized challenges. The US Division of Justice has charged him with legal fraud associated to the collapse of Terraform Labs, whereas South Korea has levied expenses of fraud, bribery, and market manipulation.
