The Appellate Court of Montenegro has decided to extradite Terraform Labs founder Do Kwon to South Korea, rejecting a competing request from the United States. However, an extradition date has not been set.
Court Rulings and Legal Proceedings
The Do Kwon tug-of-war continues between the U.S. and South Korea. The latest development in this battle of extradition has seen the scales tip towards the latter, as a Montenegran court has decided to extradite the Terraform Labs founder to his native country of South Korea.
The Appellate Court of Montenegro confirmed an earlier decision from the High Court of Podgorica, mandating that Kwon be sent to South Korea. This decision comes after months of legal disputes involving Kwon’s lawyers, courts, and prosecutors debating the appropriate jurisdiction for his extradition.
Background and Charges
Do Kwon and his company, Terraform Labs, have been under intense scrutiny since the collapse of their algorithmic stablecoin, Terra LUNA, which resulted in $40 billion in losses. The U.S. Securities and Exchange Commission (SEC) charged Kwon and Terraform Labs in February 2023. By May, a settlement was reached, requiring Terraform to pay $3.58 billion in disgorgement and $420 million as a civil penalty. The settlement also included a provision barring Kwon from serving as an officer or director of any public company.
The U.S. vs. South Korea
Kwon’s legal team has consistently advocated for his return to South Korea, where financial criminals face a maximum sentence of 30 to 40 years. South Korea was also the first to submit an extradition request for Kwon.
In contrast, U.S. law allows for consecutive sentences for multiple crimes, potentially leading to a much longer imprisonment.
Despite this, there have been multiple court rulings overturning decisions on his extradition, reflecting the complex legal tug-of-war between the U.S. and South Korea. The High Court of Podgorica initially ruled to send Kwon to South Korea, but Montenegro’s Supreme Court intervened, delaying the process after a top prosecutor argued that the court had overstepped its authority.
Final Decision Pending
The final decision on Kwon’s extradition rests with Montenegro’s minister of justice. Although the recent court ruling favors South Korea, no extradition date has been set. Montenegro’s Prime Minister, Milojko Spajic was a personal investor in Terraform Labs, which adds another layer of intrigue to the ongoing proceedings.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
