Montenegro’s Appellate Court has upheld a ruling to extradite Do Kwon, co-founder of Terraform Labs, to South Korea, rejecting a push to send him to the United States. 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 rejects 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.
Montenegro’s Appellate Court has upheld a ruling to extradite Terraform Labs co-founder Do Kwon to South Korea, rejecting efforts to send him to the United States instead. The Podgorica-based court’s decision, announced on Thursday, marks the latest development in the ongoing legal saga surrounding the disgraced crypto mogul.
According to the court, there is no appeal against its ruling, which also upholds a fast-track extradition procedure previously issued by another Montenegrin court. Kwon’s lawyer, Goran Rodic, told Bloomberg that Montenegro will arrange the extradition with assistance from Interpol, expressing hope that it will happen “as soon as possible.”
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 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 underscores the global legal challenges faced by crypto founders.
- The case highlights 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.