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Challenges to Do Kwon’s Extradition
Terraform Labs co-founder Do Kwon’s extradition to South Korea is facing challenges as Montenegro’s top prosecutor escalates the case to the Supreme Court for review. Errors in the ruling are being claimed by the Supreme State Prosecutor’s Office in Montenegro.
Extradition Decision
Following a high court ruling in Podgorica, Kwon was set to be extradited to South Korea due to charges related to the collapse of Terra in May 2022. His partner, Han Chang-joon, has already been extradited to South Korea. Both South Korea and the U.S. sought Kwon’s extradition, but Montenegro’s minister of justice favored South Korea. This decision is now under challenge by Montenegro’s top prosecutor.
Developments in Montenegro
The latest developments in Montenegro have put Do Kwon’s extradition plans to South Korea in limbo. There is a possibility that he may end up being extradited to the U.S., which is the preferred location by Montenegro’s government.
Background on Do Kwon
Do Kwon was arrested in Montenegro in March 2023 for using a fake Costa Rican passport while traveling to Dubai, United Arab Emirates.
Arrest and Terra’s Collapse
Do Kwon is the mastermind behind the failed crypto project TerraUSD stablecoin, launched in 2022. The stablecoin, pegged algorithmically 1:1 to the U.S. dollar, lost its pegging, leading to its collapse along with LUNA, the Terra sister token.
Authorities from the United States and South Korea pursued Kwon, who fled to Singapore to evade South Korean prosecutors investigating his fraud charges. Kwon was eventually captured in Montenegro and sentenced to four months in prison after attempting to escape using a forged Costa Rican passport.
Legal Proceedings
South Korean authorities are intensifying efforts to ensure Kwon faces prosecution for alleged fraud and tax evasion. Kwon maintains his innocence, attributing the $40 billion collapse of the Terra ecosystem to market forces rather than criminal activity.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
