Montenegro to Extradite Terra Co-founder Do Kwon to the U.S.
According to the Wall Street Journal, Montenegro plans to extradite Do Kwon, co-founder of Terra, to the United States. Sources familiar with the matter revealed that Montenegro’s Justice Minister intends to send Kwon to the U.S. instead of South Korea, where he also faces charges. This decision comes after a jurisdictional battle between the two countries.
Kwon’s extradition was approved by a Montenegro court last month. However, before being transferred to the U.S., he will serve a four-month sentence in Montenegro for document forgery after attempting to leave the country with a fake passport.
Kwon is currently indicted in both his home country, South Korea, and the U.S. following the collapse of Terra’s stablecoin TerraUSD (UST) and its native asset LUNA. The downfall of these cryptocurrencies resulted in significant losses in the crypto market and triggered a market contagion.
Criminal Charges in the U.S. and South Korea
Kwon is facing criminal fraud charges from federal prosecutors in New York and a civil lawsuit from the Securities and Exchange Commission (SEC) in the U.S. In South Korea, he is charged with financial crimes such as fraud, violations of capital markets laws, manipulation of transaction volumes using “trader bots,” and bribery.
The head of the South Korean investigative team expressed that investigating the case in South Korea would be the most efficient way to bring justice to investors. He stated that Kwon could potentially receive the longest jail term for a financial crime in South Korea’s history.
Hot Take: Do Kwon’s Fate Lies with U.S. Prosecutors
While facing charges in multiple countries, Do Kwon’s immediate concern will be dealing with U.S. prosecutors.
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