Do Kwon Extradition Is Supported By The Court To Go To US For Trial

Key Points:

• Montenegro’s Supreme Court favors Do Kwon extradition to the US for fraud charges linked to TerraUSD collapse.
• Kwon’s detention in Montenegro continues as the possibility of extradition to the US is considered, suspending earlier decisions favoring South Korea’s request.
• Manhattan jury holds Terraform Labs and Kwon liable for fraud charges.

According to Bloomberg, Montenegro’s Supreme Court has reversed previous rulings regarding the co-founder of Terraform Labs Do Kwon extradition to South Korea. This decision favors US efforts to prosecute Kwon for fraud charges linked to the collapse of the TerraUSD stablecoin in 2022.

Montenegro’s Supreme Court Supports Do Kwon Extradition To The US

Kwon, detained in Montenegro since March 2023 due to travel with a fake passport, faced extradition requests from both South Korea and the US. While his lawyers pushed for extradition to South Korea, where penalties for white-collar crimes are milder, Montenegro’s Supreme Court has suspended earlier decisions to hand him over.

The court’s recent move puts the decision in the hands of Montenegro’s justice minister, pending verification of Do Kwon extradition conditions. Sources suggest Montenegro may ultimately approve extradition to the US.

Recently released from prison in Montenegro, Kwon awaits the Supreme Court’s extradition deliberations. This decision stalls efforts to extradite him to South Korea, where penalties for his alleged crimes are less severe compared to the US.

Terraform Labs and Kwon Held Liable for Fraud by Manhattan Jury

In a separate legal battle, a Manhattan jury found Terraform Labs and Kwon liable for civil fraud charges brought by the US Securities and Exchange Commission (SEC). The verdict came after the SEC accused them of misleading investors about the stability of TerraUSD and falsely claiming its blockchain integration with a Korean mobile payment app.

The SEC alleges that investors lost over $40 billion due to the collapse of TerraUSD and its associated token, Luna, in May 2022. Civil financial penalties and industry bans are being sought against Kwon and Terraform. US District Judge Jed Rakoff will determine penalties after considering arguments from both parties.