Do Kwon Once Denied U.S. Jurisdiction While On The Run

Key Points:

• Do Kwon, CEO of Terraform Labs, once denied U.S. jurisdiction during the run.
• Do Kwon’s attorney argued that most of the company’s business is essentially global and that it is not specifically aimed at the United States.
• The Terra executive’s previous decision received attention while South Korea and the United States wanted to extradite him to their countries for trial.

On April 4, it was confirmed by Yonhap News Agency that Do Kwon, CEO of Terraform Labs, once denied U.S. jurisdiction during the absconding process. Will this decision be repeated?

The media reported that Do Kwon and Terraform Labs had asked the U.S. Supreme Court to postpone the deadline for filing an appeal request by 30 days from August 18 last year to October 6.

In a filing with the U.S. Supreme Court, Kwon’s lawyers countered, saying that although Terraform is a Singapore company and Kwon is also a resident of Singapore, the Second Court of Appeals recognized the right to individual jurisdiction of the US SEC. However, the attorney argued that most of Terraform’s business is global and not specific to the United States. The SEC’s actions violate the law and conflict with the decisions of other courts.

“Kwon is the CEO of Terraform, an open-source software development company with limited contact with the U.S. Most of the company’s business is essentially global, and it’s not specifically targeted into the United States.”

In addition, Kwon’s attorney also requested an extension of the appeal filing and has yet to confirm whether the U.S. Supreme Court has granted the extension request or if Kwon has appealed. But in mid-August last year, Do Kwon said in an interview that he had moved to Singapore and would cooperate with the investigation of the Korean prosecutor.

In early September, Do Kwon secretly left Singapore for Serbia via Dubai, United Arab Emirates. By the end of September, Interpol discovered his absconding behavior and issued a red notice. Some people believe that Do Kwon’s action is to drop a “smoke bomb” to ensure the necessary time for the escape, which can also be understood as Do Kwon denying the authority of the U.S. authorities and intending to do so to mitigate future penalties.

The United States applies the principle of justice plus convictions for individual crimes, allowing imprisonment of more than 100 years. The SEC and local prosecutors have determined in advance that virtual assets have securities assets, laying the foundation for judicial proceedings.

On the other hand, in South Korea, the maximum sentence for an economic crime is only about 40 years, and there is no standard or law to determine whether a virtual currency is a security.

The Terra executive’s previous decision to deny U.S. jurisdiction received much attention while both the U.S. and South Korea were seeking his extradition to their country of origin to face charges.

Kwon is currently being held in Montenegro on suspicion of forging a passport and is facing trial, and, likely, they will not reveal their jurisdiction over the Terra and Luna collision any time soon.

In a recent interview with Yonhap News, Kwon’s local legal representative in Montenegro, Attorney Voislav Zetsevich, declined to answer whether he wanted to be extradited to South Korea or the United States, saying ” no comment.”‘

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