Policy & Regulation

Montenegro court dismisses Terra’s Do Kwon extradition appeal: report

Published

9 months ago

December 26, 2024

Montenegro’s Constitutional Courtroom has rejected an attraction by crypto tycoon Do Kwon, paving the best way for a choice on his extradition to the US or South Korea.

Do Kwon, founding father of Terraform Labs, has misplaced his attraction to the Constitutional Courtroom of Montenegro that he filed to rethink the choice on his extradition, Korea JoongAng Each day has realized. The ruling means Kwon’s case will now be determined by Montenegro’s justice minister, who will decide whether or not Kwon will likely be despatched to the USA or South Korea for trial.

Kwon is needed in each nations. Within the US, he’s going through costs associated to the crash of his failed algorithmic stablecoin TerraUSD (USTC) and token Luna (LUNA) in Could 2022. He’s additionally going through authorized troubles in South Korea. Kwon was arrested in Montenegro in March 2023 when he tried to board a non-public flight to the UAE with cast paperwork.

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Do Kwon was a distinguished determine within the crypto world and created the Terra blockchain community with the promise of revolutionary algorithmic stablecoins. Nevertheless, every thing got here crashing down in Could 2022, simply months after the crypto market peaked in late 2021, leading to $60 billion in losses for each retail and institutional traders.

Because the crypto business suffered bankruptcies, Kwon fled from authorities. Firms akin to Three Arrows Capital and FTX went bankrupt attributable to a significant liquidity disaster, whereas Kwon fled to Europe.
After a pink alert from Interpol and worldwide consideration, Kwon was arrested within the capital of Montenegro, Podgorica.

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Kwon’s firm, Terraform Labs, agreed to a report $4.47 billion settlement with the U.S. Securities and Alternate Fee after a jury discovered it responsible of defrauding crypto traders.

Learn extra: Terraform is being dissolved following a $4.47 billion settlement with SEC