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- The prolonged legal proceedings surrounding the extradition of controversial crypto figure Do Kwon have reached a conclusion.
- The Appellate Court of Montenegro has ruled that Kwon, the founder of the now-defunct Terra blockchain, will be extradited to South Korea for legal action.
- This ruling confirms an earlier decision by the High Court of Podgorica, and signifies a significant development in the global legal pursuit of Kwon.
The Appellate Court of Montenegro has decided to extradite Do Kwon, founder of the collapsed Terra blockchain, to South Korea. The decision caps a protracted legal battle and carries implications for the global crypto-legal landscape.
Do Kwon Extradition Confirmed to South Korea
The Appellate Court of Montenegro has re-affirmed a previous decision by the High Court of Podgorica to extradite Do Kwon to South Korea. This decision comes after a contentious back-and-forth involving legal requests from multiple countries, including the United States. A statement on the Podgorica court’s website indicated that no appeals were made against this ruling, suggesting a finality to Montenegro’s decision.
Implications and Expert Opinions
Legal experts view Montenegro’s decision as a double-edged sword for Kwon. According to Terrence Yang, Managing Director at Swan Bitcoin, the U.S. might have enforced harsher penalties than South Korea, where Kwon may face a relatively lighter sentence. Yang noted that the U.S. has a greater volume of victims both by number and dollar amount. Following this ruling, Do Kwon’s attorney, Gordin Rodic, told Bloomberg that plans for his extradition are underway, facilitated by Interpol.
Shifting Legal Grounds
Kwon’s legal saga has been characterized by numerous reversals and shifting jurisdictional claims. Initially, the U.S. was set to take custody, but this was overturned in March when it was revealed that South Korea’s extradition request predated that of the United States. Montenegro’s Supreme Court had also ruled in favor of the United States at one point, further complicating the process. Ultimately, the final decision rested with Montenegro’s Minister of Justice, Andrej Milovic, who has now approved the extradition to South Korea.
The Downfall of Terra Blockchain
The collapse of the Terra blockchain in May 2022 significantly impacted the crypto market. Terra’s algorithmic stablecoin mechanism failed, leading to the destabilization of both TerraUSD (UST) tokens and the native LUNA token, resulting in combined investor losses of $44 billion. The U.S. Securities and Exchange Commission (SEC) later filed a lawsuit against Kwon and Terraform Labs, seeking $5.3 billion in fines for their alleged harm to investors.
Conclusion
The extradition of Do Kwon to South Korea brings an end to a long, complex legal battle that has spanned multiple jurisdictions and involved significant international legal resources. For the crypto community, this case underscores the importance of regulatory oversight and the severe consequences of financial misconduct. Moving forward, the resolution of this case may influence how future crypto-related litigations are handled globally.