The Montenegro Appellate Court has upheld a ruling to extradite Terraform Labs co-founder Do Kwon to South Korea, rejecting the US request. This decision marks a significant development in the ongoing legal saga surrounding Do Kwon.
Points
- Montenegro Appellate Court upholds Do Kwon’s extradition to South Korea.
- The court rejected the US request for extradition.
- Kwon’s repatriation will be fast-tracked with Interpol’s assistance.
- Kwon faces multiple charges, including fraud, in South Korea and the US.
- The case highlights global scrutiny of crypto projects and their founders.
On August 1, the Montenegro Appellate Court upheld a previous ruling to extradite Terraform Labs co-founder Do Kwon to his home country of South Korea. This decision rejects the United States’ bid to extradite Kwon and solidifies his return to South Korea.
According to a court statement, there is no motion to appeal the extradition ruling, and Do Kwon’s repatriation to South Korea will be fast-tracked with assistance from Interpol. This ruling is likely the final decision in a series of legal battles, appeals, and reversals concerning whether Kwon should be extradited to the US or South Korea.
Kwon was arrested in Montenegro in March 2023 for using counterfeit travel documents while attempting to board a flight to Dubai. Both the US and South Korea have sought criminal charges against him, with the US Securities and Exchange Commission （SEC） charging Terraform Labs and Kwon in February 2023 over the collapse of the algorithmic stablecoin Terra USD （UST）.
In April, a US court found Terraform Labs and its founder, Do Kwon, liable for fraud in a case brought by the SEC. The verdict included six charges of misleading investors and “reckless” mishandling of customer funds. Subsequently, in June, Terraform Labs agreed to a $4.47 billion settlement with the SEC, which included disgorgement fines of roughly $3.6 billion, a $420 million civil penalty, and $467 million in interest payments. The settlement terms also bar Kwon from becoming an officer or director of any public firm.
Following the settlement, Terraform Labs announced it was ending operations on June 12, 2024, and relinquishing control of the Terra ecosystem to the community.
Cointelegraph
Terraform Labs and the Connection to Montenegrin Prime Minister Milojko Spajic
In the wake of the legal settlement between Terraform Labs and the SEC, Montenegrin news outlet Vijesti reported that current prime minister Milojko Spajic was an early investor in Terraform Labs. The report claimed that Spajic invested $75,000 in Terraform Labs in 2018 and received 750,000 LUNA tokens just days before the company was registered as a business entity in Singapore. Spajic has denied these claims, stating that Das Capital SG, a company he worked for before taking office, made the investment.
解説
- The Montenegro court’s decision to extradite Do Kwon to South Korea highlights the global legal challenges faced by crypto founders.
- The case underscores the increasing regulatory scrutiny on crypto projects and the importance of compliance with legal standards.
- The significant financial penalties and settlements imposed on Terraform Labs and Kwon reflect the serious consequences of misleading investors and mishandling funds.
- The involvement of high-profile individuals like Montenegrin Prime Minister Milojko Spajic adds a layer of complexity to the case, illustrating the far-reaching implications of cryptocurrency investments and regulations.
- This case serves as a precedent for future legal actions against crypto founders and projects, emphasizing the need for transparency and accountability in the industry.