Key takeaways:
- Do Kwon is set to have his extradition to either the United States or South Korea, approved by a Montenegrin court.
- The court ordered that before Kwon can be extradited, he must serve a four-month prison sentence for document falsification in Montenegro.
Do Kwon, a co-founder of Terraform Labs, is set to have his extradition to either the United States or South Korea approved by a Montenegrin court, adding another chapter to his ongoing story.
Kwon’s extradition has been granted by the High Court of Podgorica, as per an official announcement published on the court’s website on November 24.
The notification states that although the court authorized Kwon’s extradition to the United States or South Korea, the Minister of Justice of Montenegro will ultimately decide whether to extradite him.
Kwon was convicted of using a counterfeit Costa Rican passport by a court in Montenegro, and the court sentenced him to four months in prison.
The court ordered that before Kwon can be extradited, he must serve a four-month prison sentence for document falsification in Montenegro.
Kwon’s legal issues extend beyond Montenegro and include many fraud accusations brought by federal prosecutors in the United States. In addition, civil lawsuits are still pending in the US.
In addition, there is a current inquiry underway in South Korea that is specifically related to the collapse of TerraUSD a year ago.
The story of Terra doesn’t end with Kwon’s court cases. Daniel Shin, a co-founder of Terraform Labs, ran into legal problems in South Korea in April. Laws pertaining to capital markets were allegedly broken by him. In response, the prosecution froze assets connected to the case worth $185 million.
In response, the prosecution froze $185 million in case-related assets. Shin, however, angrily denied having anything to do with the company’s demise, claiming to have left two years earlier.
An important step forward in the ongoing legal battles concerning Terra is the approval of Do Kwon‘s extradition.
The world community will be closely watching the course of the court procedures to see how this case affects oversight and regulations in the financial technology and cryptocurrency industries.
In the upcoming months, the justice minister of Montenegro will be the center of attention. This is happening while they consider whether to extradite Kwon to the US or South Korea. Investigations in the US and South Korea will also proceed concurrently, offering more insight into the level of legal accountability for individuals involved in the Terra scandal.
