Victory For Do Kwon? Montenegro’s Latest Ruling Reverses Extradition To South Korea

Montenegro, caught in the crossfire of extradition battles between the United States and South Korea, has recently witnessed a significant turn of events in the case of disgraced crypto mogul Do Kwon. 

After a Montenegrin appeal court rejected his extradition to the US, Montenegro’s Supreme Court overturned earlier decisions to extradite Kwon to South Korea, Bloomberg recently reported. 

This development has bolstered US efforts to prosecute the former crypto mogul for fraud related to the collapse of the TerraUSD stablecoin in 2022. However, Do Kwon’s ultimate fate hangs in the balance as both the US and South Korea seek his extradition.

Do Kwon’s Extradition Battle Takes A New Turn

In mid-March, Bitcoinist reported that a Montenegrin appeals court had rejected Kwon’s extradition to the United States but confirmed that South Korea’s extradition request took precedence over the US request. However, Montenegro’s Supreme Court overturned those earlier decisions, reviving US efforts to try Kwon on fraud charges. 

Notably, the Supreme Court has stated that the country’s justice minister will eventually determine where Kwon will be handed over, pending a thorough examination of the extradition conditions.

Recent developments in the United States have further complicated Do Kwon’s situation. A federal jury in New York has found Kwon and his company, Terraform Labs, liable for defrauding investors who collectively invested billions of dollars into crypto assets that later plummeted in value. 

The civil complaint, filed by the Securities and Exchange Commission (SEC) in February 2023, alleged that Kwon and Terraform Labs engaged in a fraudulent scheme that resulted in a $40 billion loss of market value. 

Terraform Labs Challenges Verdict

In response to the unfavorable verdict, Terraform Labs expressed disappointment and maintained that the evidence did not support the jury’s decision. 

The company will evaluate its legal options and next steps, including a potential appeal. Terraform had previously signaled its intention to challenge the SEC’s classification of its tokens as “securities.” 

Kwon’s absence from the courtroom, which limited his ability to participate in the proceedings fully, may support the appeal. a Terraform spokesperson said in a statement:

We are very disappointed with the verdict, which we do not believe is supported by the evidence. We continue to maintain that the SEC does not have the legal authority to bring this case at all, and we are carefully weighing our options and next steps.

Ultimately, this decision aligns with US efforts to prosecute Do Kwon for fraud charges related to the collapse of TerraUSD stablecoin. However, the outcome remains uncertain as Montenegro’s justice minister will decide where Do Kwon will be handed over, pending fulfilling the conditions for extradition. 

Terraform Labs’ Luna token, renamed to Luna Classic (LUNC) after the collapse that triggered legal action against the company and its co-founder, is currently trading at $0.0001378. It has experienced a marginal 1% increase in the past 24 hours. However, over longer periods, the token has suffered losses of up to 28% in the past 30 days.

Featured image from CNN, chart from TradingView.com