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Do Kwon’s Extradition to the US Raises Questions Amid Political Controversy Following TerraUSD Collapse
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Montenegro orders Terraform Labs founder Do Kwon’s extradition to the US, rejecting South Korea’s request.
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Kwon faces charges linked to the $40B cryptocurrency collapse of TerraUSD and Luna in May 2022.
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Controversy arises over Kwon’s alleged political ties in Montenegro during extradition proceedings.
Do Kwon’s extradition to the US marks a significant development in the aftermath of the TerraUSD and Luna collapse, raising questions about investor accountability.
Do Kwon To Face Trial in the US
Earlier this week, COINOTAG reported that a US extradition was likely after Montenegro’s court dismissed Do Kwon’s appeal against extradition, citing legal flaws in his case. While the extradition date isn’t final yet, Kwon will likely face a trial similar to Sam Bankman-Fried. The FTX founder is currently serving a 25-year sentence, and he was also extradited from the Bahamas. However, his extradition was far less complicated than Kwon’s.
“Taking into account the Supreme Court’s ruling, the Ministry of Justice reviewed all facts and circumstances and assessed criteria such as the severity of the criminal offenses, the location of their commission, the nationality of the requested individual, as well as other circumstances. Based on this, it was concluded that the majority of the criteria stipulated by law favor the request for extradition by the competent authorities of the United States,” stated the Ministry of Justice in its announcement.
The Terraform Labs founder is under investigation in both the US and South Korea for his role in a major cryptocurrency collapse in May 2022. At that time, the crash of TerraUSD and Luna erased $40 billion from the crypto market. It triggered a widespread financial fallout, leading to the bankruptcy of several companies in the sector.
Furthermore, authorities allege that Kwon deceived investors and suspect he concealed significant assets. In March 2023, Kwon and his business partner, Han Chong Jun, were arrested at Podgorica Airport in Montenegro while attempting to board a flight to Dubai using fake passports. Kwon was sentenced to four months in prison in Montenegro. However, he is currently detained at the Spuž Centre for Reception of Foreigners.