Do-kwon Kwon, co-founder of Terraform Labs, has been released from a Montenegrin prison and is scheduled to be extradited to the United States or Korea, raising questions about future legal proceedings.
After spending several months running Terra ecosystem collapse in 2022Mr. Kwon was arrested while trying to use a fake travel document in Montenegro. He was initially sentenced to four months in prison, but was released while extradition deliberations were underway between the United States and Korea.
Do Kwon’s legal battle and extradition deliberation
Kwon’s release coincides with Montenegro’s Supreme Court considering extradition requests from the United States and South Korea. Both countries are trying Kwon on criminal charges related to the collapse of the $40 billion Terra ecosystem.
A decision on Kwon’s extradition appeared imminent as Montenegro’s appeals court upheld the lower court’s ruling. But Montenegro’s top prosecutor intervened, the Supreme Court intervened and the extradition decision was postponed.
Civil fraud trial begins in New York City
While the legal action is ongoing in Montenegro, a civil fraud trial against Mr. Kwon is underway. Terraform Labs It started in New York City. The U.S. Securities and Exchange Commission (SEC) accused Kwon and his company of deceiving investors regarding Terra’s stability and integration with South Korean mobile payment apps.
Despite Kwon’s absence from the trial, the aftermath of the collapse of Terra’s ecosystem continues to be highlighted as the legal battle against him and Terraform Research Institute progresses.
Key points:
- Kwon Do’s release from a Montenegrin prison has sparked uncertainty about whether he will eventually face criminal charges in the United States and South Korea.
- Despite the ongoing legal battle and extradition deliberations, a civil fraud trial initiated by the SEC against Kwon and Terraform Labs has begun in New York City.