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Terraform Labs Co-Founder Do Kwon’s Legal Battle
Terraform Labs co-founder Do Kwon’s legal situation has taken a new turn as he was released from prison in Montenegro recently. This development comes as the Supreme Court in Montenegro is considering extradition requests from the U.S. and South Korea.
Background
- Do Kwon was arrested in Montenegro in March 2023 for using a fake Costa Rican passport while traveling to Dubai, United Arab Emirates.
- Both South Korea and the U.S. sought to extradite Kwon, with Montenegro’s minister of justice initially favoring South Korea.
Legal Challenges
Kwon’s extradition to South Korea is facing challenges from Montenegro’s top prosecutor. The Supreme State Prosecutor’s Office in Montenegro has raised concerns about errors in the case and is escalating it to the Supreme Court for review.
Despite the extradition requests, Kwon was released from prison in Montenegro as his term for traveling with fake documents came to an end. However, his legal troubles are far from over as authorities continue to pursue the case.
Do Kwon’s Involvement with TerraUSD
Do Kwon played a key role in the creation of the TerraUSD stablecoin, which was launched in 2022. The stablecoin, pegged algorithmically to the U.S. dollar, faced challenges that led to its collapse along with the Terra sister token, LUNA.
Kwon’s escape to Singapore to avoid prosecution in South Korea eventually led to his arrest in Montenegro. He was sentenced to four months in prison for attempting to flee using a forged passport.
Legal Proceedings
South Korean authorities are intensifying efforts to ensure that Kwon faces charges related to alleged fraud and tax evasion. Kwon maintains his innocence, attributing the collapse of the Terra ecosystem to market forces rather than criminal activities.
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.
