The Higher Court in Podgorica Approves Extradition of Terraform Labs Co-Founder
The Higher Court in Podgorica, the capital city of Montenegro, has granted approval for the extradition of Do Kwon, co-founder of Terraform Labs. The extradition is being sought by both South Korea and the United States on charges related to financial crimes in both countries. While Kwon has agreed to be extradited to South Korea, the final decision on which country takes precedence for extradition lies with the Minister of Justice of Montenegro.
Extradition Process and Prison Sentence
If approved by the minister, Kwon will be extradited after completing a 4-month prison sentence in Montenegro for document forgery. Kwon was initially arrested in March for attempting to leave the country using a fake passport. However, he was released on bail in May and later sentenced to four months in prison for document forgery.
Global Search and Terra Collapse
Kwon gained international attention when Interpol issued a red notice for him in September 2022. This notice was issued following the collapse of two tokens he had created, TerraUSD and Luna, which caused significant losses for investors amounting to approximately $40 billion. The collapse led to a worldwide search for Kwon.
Indictment of Co-Founder Daniel Shin
In April of this year, Terraform’s other co-founder, Daniel Shin, was indicted in South Korea for violating capital markets laws. Prosecutors froze $185 million in assets as part of the investigation. However, Shin maintains that he had no involvement in the Terra collapse and had left the company two years prior.
Hot Take: Extradition Pending Decision
The Higher Court’s approval of Do Kwon’s extradition marks a significant development in the ongoing legal proceedings against the Terraform Labs co-founder. With extradition requests from both South Korea and the United States, the final decision lies with the Minister of Justice of Montenegro. This decision will determine which country will take precedence for Kwon’s extradition. Meanwhile, Kwon awaits the completion of his prison sentence in Montenegro for document forgery. The outcome of this case will have far-reaching implications for the cryptocurrency industry and the individuals involved.
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