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Terraform Labs co-founder Do Kwon has been finally released from Montenegro jail as the Supreme Prosecutor had previously questioned the High Court’s decision to allow an extradition treaty.
Meanwhile, amidst all these multinational legal complexities, the SEC has remarked the Do-Kwon’s foundation – the Terraform Labs as the “house of cards”.
Here’s the latest scoop –
Do Kwon’s Release and Pending Extradition
Do Kwon, the co-founder of Terraform Labs, has been released from prison in Montenegro, awaiting extradition to either the U.S. or South Korea.
As previously reported by Coinpedia, Kwon will be on house arrest with multiple legal restrictions from the Supreme Court, including travel ban and passport restriction.
Both the U.S. and South Korea are seeking Kwon’s extradition to face criminal charges, primarily related to fraud, in connection with the $40 billion collapse of the Terra ecosystem in May 2022.
A ‘house of cards’
Meanwhile, in New York, the U.S. Securities and Exchange Commission has initiated a civil fraud trial against Kwon and Terraform Labs. The SEC accuses them of deceiving investors about the stability of Terra and its integration into a popular Korean mobile payment app.
SEC attorney Devon Staren stated, “Terra was a fraud, a house of cards, and when it collapsed, investors lost nearly everything.”
The trial of Do Kwon and Terraform Labs is still pending as Kwon remains outside the U.S. and his extradition is still not finalised all along while the Terraform Lab’s bankruptcy filing is still under process.
In conclusion …
Do Kwon’s release on bail marks a pivotal moment in Terraform Labs’ legal saga. As the SEC’s civil fraud trial unfolds and extradition proceedings loom, the outcome remains uncertain. The allegations of fraud and the characterization of Terra as a “house of cards” highlight the high stakes involved in the case.