Key Takeaways
- Do Kwon, Terraform Labs co-founder, is to be extradited to the United States from Montenegro to face fraud charges after a Montenegrin court decision.
- The High Court of Podgorica dismissed Kwon's legal team's appeal for extradition to South Korea over the United States.
- The United States has charged Do Kwon with eight criminal counts related to his involvement in Terraform Labs, alongside a civil case by the U.S. Securities and Exchange Commission for alleged securities fraud.
Do Kwon, co-founder of Terraform Labs, is set to be extradited to the United States from Montenegro, where he has been detained since his arrest on March 23, 2023.
The decision was made after the High Court of Podgorica rejected Kwon's defense's appeal for the Justice Minister of Montenegro to have the last say in the case, as well as their request to prioritize extradition to South Korea over the United States.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
How to Pick the Right DeFi dApp? (Dos and Don’ts Explained)
In March 2023, Do Kwon was arrested for possessing counterfeit travel documents, unveiling his location after he had vanished in the aftermath of Terra's collapse in May 2022. Since then, his legal pursuit has been a point of international contention, with authorities from both the U.S. and South Korea vying to prosecute him first.
The U.S. authorities have charged him with eight criminal counts, reflecting the gravity of the allegations against him.
The U.S. Securities and Exchange Commission is also pursuing a civil case against Kwon and Terraform Labs, accusing them of "orchestrating a multi-billion dollar crypto asset securities fraud". The trial is set for March 25.
The exact date of Kwon's extradition remains uncertain.
This extradition marks a crucial step in addressing the fallout from the Terra debacle as regulatory and legal systems worldwide grapple with the complexities and consequences of cryptocurrency fraud.
