In a surprising update shared by the Wall Street Journal on February 22, 2024, the High Court in Montenegro ruled that cryptocurrency entrepreneur Do Kwon should be extradited to the U.S. to face fraud charges. The court dismissed South Korea as the extradition location, setting the stage for a legal showdown that’s been making headlines.
Understanding the Montenegro Verdict
The High Court in Podgorica, Montenegro, delivered a ruling compelling Do Kwon’s extradition to the U.S., a decision now subject to a three-day appeal period by Kwon’s legal team. This ruling follows Kwon’s arrest in March 2023 at the Podgorica airport, attempting to board a private jet to Dubai with a fake Costa Rican passport.
The legal drama expands internationally as the U.S. Department of Justice brings eight criminal fraud charges against Kwon. The accusation? Misleading investors about TerraUSD’s stability. Simultaneously, the Securities and Exchange Commission (SEC) files a civil case, alleging securities fraud tied to the collapse.
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South Korea’s Pursuit
Beyond the U.S. charges, South Korea is also seeking Kwon for alleged violations of its capital markets laws, with an arrest warrant in place since September 2022.
The Montenegrin court’s decision puts Kwon on track to face the SEC’s fraud lawsuit, scheduled to begin on March 25.
In a related update, Han Chang-joon, former CFO of Terraform Labs, shares the spotlight. Extradited to South Korea on February 5, alongside Kwon, by Montenegrin authorities, he faces potential life imprisonment in South Korea after serving a four-month sentence in Montenegro.
The Global Fallout
The ripple effect of Kwon’s alleged actions extends globally, with both the U.S. and South Korea pursuing his prosecution. The focal point? The May 2022 collapse of TerraUSD and Luna, causing a staggering $40 billion loss in the cryptocurrency market.
Investors and traders worldwide are grappling with the aftermath as Kwon, the creator of TerraUSD and Luna, faces eight criminal counts of fraud as detailed by federal prosecutors in New York.
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