Key Takeaways
- Do Kwon, Terraform Labs co-founder, was released from Montenegrin prison as the Supreme Court reviews the decision to extradite him to South Korea.
- Post-release, Kwon was moved to a center for foreign nationals, with his travel documents seized, limiting his mobility out of Montenegro.
- The core of the legal drama revolves around the Terra digital currency's collapse in 2022, leading to subsequent fraud charges against Kwon in the United States and South Korea, with both countries seeking his custody.
Do Kwon, the co-founder of Terraform Labs, has been set free from Montenegrin custody.
As per Bloomberg, Kwon was released on March 23 after completing his sentence for possessing fraudulent travel documents.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
How Do KYC & AML Work in Crypto? (Explained)
Kwon's lawyer, Goran Rodic, has confirmed his release and is reportedly preparing to challenge any extradition decision, advocating for his freedom during the interim period.
Following the release, Kwon was transferred to a facility for foreign nationals, pending further legal proceedings. His passport has been confiscated, restricting his ability to leave Montenegro.
It has been reported that the Supreme Court Council was behind the decision to temporarily free Kwon as they prepare to evaluate whether to approve or reject his extradition to South Korea, his homeland.
At the heart of the controversy is the dramatic collapse of the Terra digital currency platform in 2022, which erased around $60 billion in market value and sparked fraud allegations in multiple jurisdictions.
In the aftermath of the downfall, Kwon faces charges in the US and South Korea, with both countries seeking his custody. He faces eight charges in the US, including fraud and market manipulation. In South Korea, he is accused of fraud and violating capital markets law, with a looming 40-year prison sentence.
Given the decentralized and borderless nature of digital currencies, the case has highlighted the international legal challenges associated with prosecuting alleged crypto fraud.
