Terraform Labs co-founder Do Kwon is set to be extradited to South Korea after the Appellate Court of Montenegro ruled in favor of his return. This decision comes after a series of legal battles and reversals, adding to the drama surrounding the disgraced crypto founder.
The ruling on August 1st marks the latest development in Kwon’s case. In March, a high court in Montenegro initially ordered his extradition to South Korea. However, this decision was later overturned, and the case was sent to a lower court in April. Now, with the Appellate Court’s decision, it seems that Kwon’s return to South Korea is imminent.
The extradition request from the U.S. was rejected by the High Court of Podgorica in April, and the focus shifted to South Korea’s request. The court’s statement emphasized that there was no appeal against the decision to allow extradition to South Korea, making it legally binding.
The charges against Kwon stem from the collapse of Terraform Labs, which wiped out billions in market value and caused turmoil in the crypto industry. The U.S. Securities and Exchange Commission (SEC) sued Kwon and Terraform, accusing them of defrauding U.S. investors who bought their digital assets, TerraUSD and Luna, in February 2023. Meanwhile, South Korea also seeks Kwon’s extradition on allegations of fraud and financial crimes related to the implosion of Terra USD and Luna in May 2022.
It is worth noting that Kwon’s company, Terraform Labs, filed for Chapter 11 bankruptcy earlier this year. As part of the bankruptcy settlement, the company agreed to pay a penalty of nearly $4.5 billion to the SEC, with Kwon contributing $204 million. Additionally, Terraform Labs announced a strategic sale process last month as part of the ongoing Chapter 11 case.
Kwon’s arrest in Montenegro in March 2023, while attempting to travel to Dubai on a counterfeit passport, marked a turning point in his legal troubles. He was sentenced to four months in jail but was released on bail in March 2024. Now, with the impending extradition to South Korea, Kwon will finally face justice for his alleged crimes.
The case of Do Kwon highlights the global nature of crypto-related crimes and the need for international cooperation in pursuing justice. The involvement of multiple countries, including the U.S., South Korea, and Montenegro, demonstrates the complexities of extraditing individuals involved in such cases. However, the ruling in Montenegro signals a step forward in holding Kwon accountable for his actions and ensuring that justice is served.
