Terra Founder Do Kwon’s Extradition Approved by Montenegrin Court
A court in Montenegro has given the go-ahead for the extradition of Do Kwon, the founder of Terra, to either South Korea or the United States. The final decision on the country of extradition will be made by the Montenegrin Justice Minister. Before the extradition process begins, Kwon will serve a four-month prison sentence in Montenegro for document forgery.
Kwon was arrested at Podgorica’s airport in March with falsified documents. He is also facing multiple fraud charges from US federal prosecutors. They allege that he made false statements about the adoption of the Terra blockchain and misleading statements about the stability of TerraClassicUSD stablecoin.
Additionally, Kwon is dealing with civil charges in the US and is under investigation in South Korea for the collapse of TerraUSD. The Montenegro High Court recently upheld his prison sentence, and after serving it, he may be extradited.
Terra Co-Founder Indicted in South Korea
Daniel Shin, co-founder of Terraform Labs, has been indicted in South Korea for violating capital markets laws. Prosecutors have frozen $185 million in assets. Shin denies any involvement in the company’s collapse and claims to have left two years prior to the incident.
Shin is also the founder of Chai, which had a business partnership with Terra. While he stated that the partnership ended in 2020, an interview from 2022 suggests otherwise. Shin’s legal team clarified that he has not been involved with Terra since 2020 and that charges by the US SEC do not mention him.
TerraUSD lost its dollar peg last year due to sell-offs in the crypto market.
Hot Take: Do Kwon’s Legal Troubles Continue
The extradition approval of Do Kwon, the founder of Terra, marks another chapter in his ongoing legal battles. Facing charges of document forgery and fraud, Kwon must first serve a prison sentence in Montenegro before potentially being extradited to South Korea or the US. This development comes alongside the indictment of Terra co-founder Daniel Shin in South Korea for alleged violations of capital markets laws.
These cases highlight the challenges faced by crypto entrepreneurs in navigating legal frameworks and maintaining trust in their projects. As the Terra ecosystem grapples with the fallout from its stablecoin’s collapse, the industry as a whole must address regulatory concerns and work towards greater transparency and accountability.
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