Cryptocurrency Mogul Do Kwon Faces Extradition to South Korea, Montenegro Court Rules
In a dramatic turn of events, cryptocurrency mogul Do Kwon is facing extradition to his native South Korea after a Montenegrin court ruled in favor of his extradition. This ruling comes as the latest twist in a months-long legal battle that began with Kwon’s arrest in Montenegro last year.
The High Court’s decision to extradite Kwon to South Korea comes just days after an appeals court overturned its previous ruling to extradite him to the United States. Kwon, the founder of Terraform Labs, was apprehended on an international arrest warrant in connection with a $40 billion crash of his company’s cryptocurrency, which had devastating effects on retail investors worldwide. Both South Korea and the U.S. have been seeking Kwon’s extradition from Montenegro.
Last month, the High Court in Montenegro had decided to hand over Kwon to the U.S. However, the Court of Appeals annulled this decision and ordered a repeat of the extradition process due to procedural issues regarding the order of extradition requests from the U.S. and South Korea. It remains unclear when the final ruling will be made, as the latest decision by the High Court can still be appealed.
Adding to his legal troubles, Kwon is currently serving a four-month prison sentence in Montenegro for using a false passport. Known as “the cryptocurrency king,” Kwon is wanted by the U.S., where he faces fraud charges by federal prosecutors in New York. South Korean prosecutors have also sought his extradition.
Kwon’s arrest took place at Montenegro’s Podgorica Airport on March 23, alongside another South Korean individual, as they were attempting to depart for Dubai using fake Costa Rican passports. The arrests were made in connection with allegations of fraud and financial crimes related to the implosion of Terraform’s digital currencies in May 2022.
One of the currencies affected by the crash was TerraUSD, a stablecoin designed to be pegged to stable assets like the dollar to prevent drastic price fluctuations. However, holders of TerraUSD and its sister currency, Luna, saw around $40 billion in market value wiped out when the stablecoin plummeted well below its $1 peg.
The extradition proceedings against Do Kwon have garnered significant attention due to the magnitude of the cryptocurrency crash and the international implications of his alleged financial crimes. As the legal battle continues, investors and industry experts eagerly await the final ruling that will determine Kwon’s fate and potentially shed light on the future of cryptocurrency regulation and accountability.