Legal Battle Continues for Terraform Labs Co-founder Do Kwon
Terraform Labs co-founder Do Kwon faces a new legal setback as Montenegro’s Supreme Court approves his extradition. The decision overturns the previous ruling by the High Court, restarting the extradition process. The final verdict now lies with the Minister of Justice, Andrej Milovic, who previously showed a willingness to extradite Kwon to the US.
Extradition Process
The court’s decision was based on the legal criteria for extradition to both South Korea and the US. While Kwon’s legal team can still appeal within three days, reports indicate a higher likelihood of extradition to the US due to the Minister of Justice’s previous statements favouring the country.
- The minister emphasized the importance of the US as a primary foreign policy ally.
- He expressed readiness to sign a bilateral extradition agreement to facilitate future extraditions.
Kwon, one of the founders of Terraform Labs, went missing in April 2022 before the company’s collapse. He was arrested in Montenegro in March 2023 for passport forgery and served a four-month sentence. After his release, Kwon was transferred to a detention center for foreigners.
Significant Setback
The recent approval of Kwon’s extradition comes as a significant setback for him. He had hoped for extradition to South Korea, where he could potentially receive a more lenient sentence leveraging his connections. However, US prosecutors are keen on prosecuting Kwon for his role in the $40 billion collapse of the Terra ecosystem.
- A New York jury ruled against Kwon and Terraform in a lawsuit filed by the US Securities and Exchange Commission (SEC).
- The lawsuit focused on Kwon and Terraform’s misleading claims about Chai, a popular Korean payment app, and the stability of UST.
Hot Take: Road Ahead for Do Kwon
As the legal battle continues, Do Kwon’s future remains uncertain. The extradition process to the US could have significant implications for him, given the serious allegations against him. Stay tuned for more updates on this developing situation.
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