The extradition of Terra Labs’ Do Kwon to the United States has been temporarily halted as a Montenegro court has ordered a review of the case.
The extradition of Terra Labs’ Do Kwon to the United States has been temporarily halted as a Montenegro court has ordered a review of the case. The decision came after Kwon's defense filed a complaint challenging the extradition, which had been approved by a court last month.
Kwon, the co-founder of the collapsed Terra blockchain, was arrested in Montenegro earlier this year on charges of allegedly attempting to travel on a fake passport. He now awaits the outcome of the court review while in custody in Montenegro.
Terraform Labs, the company founded by Kwon, was behind the once-popular Terra blockchain, its native cryptocurrency, LUNA, and algorithmic stablecoin UST. LUNA was once ranked among the top digital assets by market capitalization. However, in May 2022, the Terra ecosystem collapsed, leading to the bankruptcy of several crypto projects that had exposure to Terra.
Both American and South Korean authorities have charged Kwon with various offenses, including violating capital markets regulations. If convicted, he faces significant jail time in both countries.
Dan Sunghan, the financial crime investigation bureau at the Seoul Southern District Prosecution, stated in a BNN Bloomberg interview that Kwon could face over four decades in prison if found guilty in both jurisdictions. In addition, the U.S. Securities and Exchange Commission (SEC) has charged Kwon with "orchestrating a multi-billion dollar crypto asset securities fraud."
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