Decision on Extradition of Terraform Labs CEO Do Kwon to US Reversed by Montenegro’s Court – Sky Bulletin
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In a recent turn of events, Montenegro’s appeals court has nullified the previous ruling that ordered the extradition of Terraform Labs CEO Do Kwon to the United States, where he faces fraud charges. Instead, the reconsideration may divert his extradition to South Korea, as announced on Tuesday by the court.
The cryptocurrency entrepreneur, 32-year-old Kwon, was detained in Montenegro under an international arrest order nearly a year ago following the collapse of Terraform Labs’ digital currency, which led to a staggering $40 billion loss, severely affecting retail investors globally. Kwon’s extradition is being sought by both South Korea and the U.S.
The High Court of Montenegro made an initial decision last month to extradite Kwon to the United States. However, this decision was set aside by the appeals court due to procedural issues regarding which country’s request was filed first. Now, the lower court has been instructed to review the case once more.
The timeline for the final ruling on the extradition is not yet clear. Kwon, often referred to as “the cryptocurrency king,” is wanted by the U.S., where he faces fraud charges issued by federal prosecutors in New York. South Korean authorities have also issued requests for his extradition.
Kwon and a fellow South Korean were apprehended at the airport in Podgorica, Montenegro, on March 23 while attempting to travel to Dubai, the United Arab Emirates, using fraudulent Costa Rican passports. Kwon, along with five other Terraform associates, are pursued for fraud and financial misconduct following the catastrophic collapse of their cryptocurrencies in May 2022.
Initially pegged as a “stablecoin,” TerraUSD was tied to stable assets like the U.S. dollar to maintain a consistent value. However, the market value for TerraUSD and its sister currency, Luna, plummeted, resulting in a loss of $40 billion for holders when the stablecoin fell below its $1 peg. Presently, Kwon is serving a four-month sentence in Montenegro due to the passport fraud.
FAQ Section
Q: Who is Do Kwon?
A: Do Kwon is the founder of Terraform Labs and is known in the cryptocurrency industry as “the cryptocurrency king.”
Q: Why was Do Kwon arrested?
A: Kwon was arrested on charges related to a $40 billion crash of Terraform Labs’ cryptocurrency and for traveling with a fake passport.
Q: Which countries are seeking Do Kwon’s extradition?
A: Both the United States and South Korea are seeking his extradition.
Q: What has the Montenegro appeals court decided regarding his extradition?
A: The appeals court in Montenegro overturned the decision to extradite Kwon to the U.S. and instructed the lower court to reevaluate the case, considering procedural issues related to extradition requests.
Q: When will the final extradition decision be made?
A: The timeline for a final decision on Kwon’s extradition is currently not clear.
Conclusion
The fate of Terraform Labs’ founder Do Kwon is in a state of flux after Montenegro’s appeals court threw out a ruling for his extradition to the United States. This high-profile legal tussle speaks to the complexities of international law when it intersects with the evolving world of cryptocurrency. It remains to be seen which nation—South Korea or the U.S.—will ultimately gain the right to prosecute Kwon. As the legal process continues, the crypto community and investors affected by the Terraform Labs debacle are watching closely for the next development in this unfolding drama.
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