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Montenegro has chosen to extradite Do Kwon to South Korea rather than the United States. Kwon faces criminal charges connected to the $40 billion collapse of the Terra/LUNA ecosystem in May 2022.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/f38f9c11cc0044d78d2658151510614a.png" />Terraform Labs has refuted the charges brought by South Korea, claiming that the investigation against Kwon has become “highly politicized.”<h3 id="do-kwon-to-be-extradited-to-south-korea">Do Kwon to Be Extradited to South Korea</h3>Do Kwon, the <a href="https://cryptosheadlines.com/sec-wants-to-question-terraform-labs-co-founder-daniel-shin-in-korea/" rel="noopener noreferrer nofollow">co-founder of the bankrupt Terraform Labs</a>, will be extradited to South Korea, following a decision by a Montenegrin appeals court. The <a href="https://cryptosheadlines.com/montenegro-appeals-court-halts-do-kwons-extradition/" rel="noopener noreferrer nofollow">court rejected the United States’ request for Kwon’s extradition</a>, though the exact timing of his transfer to South Korea remains unclear.The Appellate Court of Montenegro upheld a previous ruling by the High Court of Podgorica, which favored sending Kwon to South Korea over the United States. Both countries <a href="https://cryptosheadlines.com/ftxs-sam-bankman-fried-seeks-dismissal-of-majority-of-criminal-charges/" rel="noopener noreferrer nofollow">seek to prosecute Kwon on criminal charges</a> related to the $40 billion collapse of the Terra/LUNA ecosystem in May 2022. This collapse marked the beginning of a series of high-profile crypto bankruptcies in 2022, including that of FTX, the world’s second-largest crypto exchange at the time.Kwon fled after the Terra collapse, and in September 2022, Interpol issued a red notice for his arrest. He was detained in <a href="https://cryptosheadlines.com/montenegro-court-approves-do-kwons-428k-bail-request-in-fake-passport-case/" rel="noopener noreferrer nofollow">Montenegro</a> in March 2023 for attempting to travel to Dubai with a fake Costa Rican passport. Initially sentenced to four months in prison for using forged documents, Kwon was later released on bail in March, though his real passport was confiscated to prevent him from leaving the country.Before the Terra crash, Kwon had moved to Singapore, citing safety concerns for his wife and child. The Office of the Supreme State Prosecutor in <a href="https://cryptosheadlines.com/terra-luna-founder-do-kwon-temporarily-halts-extradition-bid-in-montenegro/" rel="noopener noreferrer nofollow">Montenegro has stated that the final decision on Kwon’s extradition</a> rests with Montenegro’s Minister of Justice. Bloomberg also reported earlier this year that Montenegro’s Prime Minister, Milojko Spajic, is a personal investor in Terraform Labs.<a href="https://cryptosheadlines.com/blackrock-crypto-head-says-solana-and-xrp-etfs-unlikely-to-be-approved/" rel="noopener noreferrer nofollow">Also Read: BlackRock Crypto Head Says Solana and XRP ETFs Unlikely to Be Approved</a><h3 id="terraform-labs-denies-charges-as-legal-and-financial-troubles-mount">Terraform Labs Denies Charges as Legal and Financial Troubles Mount</h3>Terraform Labs and its co-founder, Do Kwon, have denied the criminal charges from South Korea, arguing that the investigation against Kwon is “highly politicized.” The company’s representative claims that prosecutors are acting unfairly and that Kwon should not be accused of violating South Korea’s Capital Markets Act because Luna does not meet the definition of a security under the law.The lawsuit revolves around whether Luna falls under securities law, reflecting broader concerns among global officials about the classification of digital tokens.In June, <a href="https://cryptosheadlines.com/terraform-labs-and-do-kwon-reach-initial-agreement-with-sec-in-terrausd-case/" rel="noopener noreferrer nofollow">Terraform Labs and Kwon reached an agreement</a> with the US Securities and Exchange Commission (SEC) to pay around $4.5 billion in restitution and civil penalties. Kwon personally agreed to cover at least $204.3 million of this amount. The SEC initially sought a $5.3 billion settlement, but the defendants’ attorneys proposed only $1 million in civil penalties with no recovery or injunction.Earlier this year, <a href="https://cryptosheadlines.com/terraform-labs-bankruptcy-response-to-sec-charges/" rel="noopener noreferrer nofollow">Terraform Labs filed for bankruptcy</a> in Delaware, listing liabilities between $100 million and $500 million. The estimated assets and liabilities are roughly within the same range.Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.Join Cryptos Headlines <a href="https://linktr.ee/cryptosheadlines.com" rel="noopener noreferrer nofollow">Community</a>Follow Cryptos Headlines on <a href="https://news.google.com/publications/CAAqBwgKMLz3-wowvuzoAg" rel="noopener noreferrer nofollow">Google News</a>

Montenegro Extradites Do Kwon to South Korea

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