- Montenegro plans to finalize Do Kwon’s extradition by the end of this week.
- Montenegro convicted Do Kwon of forgery, and he served a six-month sentence.
The legal saga of Do Kwon, the co-founder of Terraform Labs, is nearing a major turning point. Montenegro’s Justice Minister, Bojan Božović, has confirmed that a decision regarding Kwon’s extradition is expected by the end of this week, Oct 19.
Do Kwon has been held in Montenegro custody since March 2023, after he was arrested at Podgorica airport for using forged travel documents alongside Terraform CFO Han Chang-joon.
In February 2024, authorities extradited Chang-Joon to South Korea after he completed his sentence. But Kwon remains in Montenegro, where he faced conviction for forgery and served six months in prison.
However, the upcoming decision on his extradition comes after months of legal wrangling, with South Korean authorities pushing to bring him back to face charges.
The Fallout from Terra’s Collapse: Legal Implications for Do Kwon
Do Kwon’s involvement in the collapse of TerraUSD (UST) and LUNA in 2022 has made him a key figure in one of the crypto industry’s largest scandals. The collapse wiped out billions of dollars, causing financial damage for investors worldwide.
If South Korea extradited Do Kwon, he would face multiple lawsuits and criminal investigations related to his involvement in Terraform Labs.
The U.S. regulators are also waiting to prosecute Kwon. They seek to charge him with securities fraud and money laundering, which could lead to a harsher sentence compared to South Korea.
Meanwhile, Terraform Labs reached a $4.47 billion settlement with the U.S. Securities and Exchange Commission (SEC), agreeing to wind down operations and liquidate its assets. This case has drawn international attention. Investors are eager to see how justice will unfold for those affected by the Terra (LUNA) collapse. Before the collapse, Terra (LUNA) ranked among the top five cryptocurrencies.
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