The Montenegrin Court Revokes Do Kwon’s Extradition
The Court of Appeal in Montenegro has accepted the appeal filed by the defense lawyers of Do Kwon, co-founder of Terraform Labs, revoking his extradition to South Korea or the United States. This decision overturns the previous approval of extradition by the country’s High Court in December. In November, the High Court had declared the extradition requests legally valid, but Do Kwon won an appeal on December 19. However, on December 29, the High Court confirmed the validity of the requests again, prompting Do Kwon to file a new appeal in January. The Court of Appeal cited procedural issues and lack of clarity in the Supreme Court’s decision as reasons for revocation.
Developments in the Judicial Case
Do Kwon is being sought for alleged illicit financial activities related to the collapse of the Terra ecosystem in May 2022. He was initially arrested in Montenegro in March for using a fake passport. In June, he was convicted of document forgery and sentenced to four months in prison, which was confirmed in November after an appeal. In September 2022, Interpol issued a red notice against him. On Monday, Han Chang-joon, former CFO of Terraform Labs, was extradited from Montenegro to South Korea. The case continues with new developments.
Lee’s Testimony Against Terraform Labs Founders
A former developer from Terraform Labs testified against Do Kwon and Shin Hyun-seung, co-founders of Terraform Labs. The witness revealed that Do Kwon acknowledged violating South Korean financial regulations regarding the use of TerraUSD as a payment method. This raises questions about Terra executives’ awareness of regulatory constraints on stablecoins. The witness also disclosed Terra’s operational strategy, aiming to give LUNA the role of currency through the “ChaiPay” payment system. After the collapse of the Terra-Luna project, South Korean prosecutors accused Kwon, Shin, and Terraform Labs of defrauding investors through misleading promotion. Shin has contested these accusations and claimed to have left Terra two years before the collapse. The accuracy of the witness’s statements is being questioned by Shin’s defense team.
Hot Take: Montenegrin Court Revokes Do Kwon’s Extradition
The Court of Appeal in Montenegro has revoked the extradition of Do Kwon, co-founder of Terraform Labs, to South Korea or the United States. This decision comes after a series of appeals and highlights procedural issues in the trial. The case revolves around alleged illicit financial activities related to the collapse of the Terra ecosystem. The developments in this legal case continue to unfold with new extraditions and testimonies. The accuracy and validity of witness statements are being questioned by the defense team. This case sheds light on regulatory concerns surrounding stablecoins and raises questions about executive awareness. As Do Kwon’s extradition is once again revoked, the next steps in this complex legal battle remain uncertain.
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