Do Kwon Released from Prison as Extradition Case Continues
Terraform Labs co-founder Do Kwon has been released from prison in Montenegro while awaiting a decision on extradition requests from the United States and South Korea, according to a Bloomberg report citing prison officials. Kwon’s extradition to South Korea is being challenged by Montenegro’s top prosecutor, who claims that errors were made in the ruling.
Arrest and Collapse of Terra
Do Kwon was arrested in Montenegro in March 2023 for using a fake Costa Rican passport while traveling to Dubai. He is the architect behind Terra, a failed crypto project launched in 2022. Terra USD, a stablecoin designed as a utility token on the blockchain, was pegged algorithmically to the U.S. dollar at a 1:1 ratio.
However, the stablecoin lost its pegging, leading to its collapse along with LUNA, the Terra sister token. Kwon became a target for authorities in the United States and South Korea due to fraud charges related to Terra. He managed to escape these charges initially but was later apprehended in Montenegro.
Release from Prison
Kwon was released from prison after serving his regular term for traveling with fake papers. As he is a foreign citizen and his documents were withheld, he was taken for an interview by the police directorate for foreigners. The next steps regarding his case will be determined by this directorate.
Extradition Battle
The decision regarding Kwon’s extradition is currently under review. Both the United States and South Korea have requested his extradition, but Montenegro’s minister of justice has given preference to South Korea. However, this decision is being challenged by Montenegro’s top prosecutor, leading to further deliberation by the Supreme Court.
Prosecution for Fraud and Tax Evasion
The South Korean authorities are determined to ensure that Kwon faces prosecution for his alleged fraud cases and tax evasion. Kwon has denied the charges, stating that the collapse of the Terra ecosystem was due to market forces and not criminal activity.
Hot Take: Do Kwon’s Release Raises Questions About Extradition
Do Kwon’s release from prison in Montenegro adds another layer of complexity to his extradition case. The ongoing battle between the United States, South Korea, and Montenegro raises questions about where Kwon will ultimately face prosecution. As the Supreme Court deliberates on the extradition requests, the outcome remains uncertain. The case highlights the challenges of international cooperation in prosecuting crypto-related crimes.
Sources:
– Bloomberg Report
– Supreme State Prosecutor’s Office in Montenegro
By
By
By