Do Kwon receives favorable verdict in extradition case.
U.S. prosecutors have expressed their intention to challenge a recent ruling by a high court in Montenegro concerning the extradition of Do Kwon, the former CEO of Terraform Labs, to South Korea.
This development is part of an ongoing legal saga that involves multiple jurisdictions, including South Korea and the U.S., both of which have filed extradition requests for Kwon.
According to a report by Bloomberg on March 7, the U.S. Department of Justice (DOJ) is seeking Kwon’s extradition based on “relevant international and bilateral agreements and Montenegrin law.” The DOJ also commended the cooperation of Montenegrin authorities in upholding the rule of law.
The legal battle over Kwon’s extradition reached a crucial point on Feb. 21, when the High Court in Podgorica ruled in favor of sending Kwon to the United States. However, this decision was later overturned by the Montenegro Appeals Court due to “significant violations of the provisions of criminal procedure.” This reversal in the court’s stance redirects Kwon’s potential extradition back to South Korea.
The U.S. case against Kwon involves eight charges, including allegations of fraud and market manipulation related to the $40 billion collapse of the Terra ecosystem. South Korea has also leveled charges against Kwon, including fraud and violations of capital markets law. Kwon’s legal team has expressed a preference for his extradition to South Korea, citing proximity to his family and a potential 40-year prison sentence.
This legal development coincides with another high-profile case in the United States involving Sam Bankman-Fried, the co-founder of FTX, who faces the possibility of decades in prison following a fraud conviction in New York. The Manhattan U.S. attorney’s office, which is also pursuing charges against Kwon, prosecuted Bankman-Fried.
Kwon was apprehended in March 2023 by Montenegrin authorities for traveling with a counterfeit Costa Rican passport, following an arrest warrant issued by South Korean prosecutors in September 2022. Since his arrest, Kwon has been imprisoned for the passport incident and later transferred to extradition custody.
In related news, the Terra Classic community is actively working on initiatives to recover from the collapse of TerraUSD (UST) in May 2022. Efforts include implementing token-burning mechanisms to reduce the overall supply of LUNC and discussing potential rebranding strategies. These measures aim to restore investor confidence and distinguish the project from its troubled past.
Additionally, the community is exploring integrations with new projects and decentralized applications to expand LUNC’s functionality and encourage adoption within the web3 ecosystem.
Despite these efforts, the aftermath of the TerraUSD crash continues to present regulatory challenges for LUNC, affecting its credibility in the financial market.
