Do Kwon to be Finally Extradited to Korea, Recap on Legal Drama
A Montenegro court has finally decided to extradite Do Kwon, the embattled tech entrepreneur and founder of Terraform Labs, back to his home country of Korea.
The decision, handed down on Wednesday, follows charges from both American and South Korean authorities for alleged violations of capital markets rules.
Kwon’s extradition has been a subject of contention between the two jurisdictions, with both requesting his return. However, Kwon had previously succeeded in appealing a decision to extradite him to the United States.
Do Kwon rose to prominence as the founder of Terra, a huge crypto ecosystem renowned for its array of apps, particularly focused on algorithmic stablecoins. The platform gained immense popularity within the DeFi world, emerging as the second-largest blockchain after Ethereum. Its native cryptocurrency, LUNA, soared to prominence as one of the top digital assets by market cap.
However, Terra’s fortunes took a dramatic turn in May 2022, when it suffered a catastrophic collapse, resulting in the loss of $40 billion in investors’ funds and triggering a brutal bear market. The fallout from Terra’s downfall led to numerous crypto projects linked to the platform declaring bankruptcy.
Since then, both American and South Korean authorities have leveled a litany of charges against Do Kwon, marking the latest twist in his legal saga.
This latest development in Do Kwon’s extradition drama comes amidst ongoing legal battles and jurisdictional disputes. Despite a prior approval for his extradition to the United States by Montenegro in November, a recent notice from the court has ordered a review of the decision, delaying his return. Kwon’s defense filed a complaint, prompting the review process, leaving him in Montenegro until a final decision is reached.
Kwon’s legal troubles extend beyond extradition proceedings. He was arrested last year for allegedly attempting to travel on a fake passport, adding another layer of complexity to his legal predicament.
As the legal saga unfolds, the fate of Do Kwon remains uncertain. If found guilty, he could face severe consequences, with potential jail time spanning over four decades, according to Dan Sunghan, the financial crime investigation bureau at the Seoul Southern District Prosecution. Whether Kwon will ultimately face trial in America, Korea, or both, remains to be seen, as the legal battle continues to play out on multiple fronts.
