Terraform Labs Co-Founder Do Kwon to be Extradited to the US
After nearly a year since his arrest in Montenegro, Do Kwon, co-founder and former CEO of Terraform Labs, is reportedly set to be extradited to the United States to face criminal charges. Both the US and South Korea had previously submitted extradition requests to Montenegro officials.
Extradition Decision in Favor of the US
- The Podgorica High Court in Montenegro has decided to extradite Do Kwon to the United States, ruling out an extradition request from South Korea.
- This decision comes after Kwon’s legal team successfully appealed to overturn the High Court’s initial ruling in favor of the extradition requests from both countries.
Background and Allegations
- In March 2023, Do Kwon was arrested by Montenegro authorities while attempting to flee with a fake passport. He was later sentenced to four months in prison.
- The US Securities and Exchange Commission (SEC) accused Terraform Labs and Kwon of orchestrating a multi-billion dollar crypto asset securities fraud involving an algorithmic stablecoin and other crypto asset securities. This allegedly resulted in significant losses for investors after the crash of UST in 2022.
Legal Proceedings and Extradition Timeline
- Kwon’s legal team requested a delay in the trial date, which was granted by the SEC. They wanted their client to attend the trial in person.
- It is currently unclear when Do Kwon will be moved to the United States.
- Terraform Labs’ former financial officer, Han Chang-joon, who was arrested alongside Kwon, has already been extradited to South Korea.
Hot Take: Terraform Labs Co-Founder Facing Extradition
Do Kwon, the co-founder and former CEO of Terraform Labs, is set to be extradited to the United States to face criminal charges. The decision by the Podgorica High Court in Montenegro favors the US extradition request over that of South Korea. Kwon’s legal team successfully appealed the initial ruling, which favored extradition. He was arrested in March 2023 and sentenced to four months in prison. The US SEC accuses Kwon and Terraform Labs of a multi-billion dollar crypto asset securities fraud. The trial has been delayed, and it remains uncertain when Kwon will be moved to the US.
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