In a significant development, Montenegro’s Minister of Justice, Bojan Božović, has signed an order to extradite Terraform Labs co-founder Do Kwon to the United States. This decision comes after the country’s Supreme Court determined that all legal conditions for Kwon’s extradition had been met.
Background of the Case
Kwon, who faces significant legal challenges in the US, was arrested in February 2023 while attempting to travel from Montenegro using a counterfeit passport. The US Securities and Exchange Commission (SEC) had filed a lawsuit against Kwon and Terraform Labs, alleging they misled investors about the stability of TerraUSD and the use of Terraform’s blockchain technology.
Extradition Decision
The Ministry of Justice evaluated competing requests from the US and South Korea and concluded that the US request met the most legal criteria. The decision was based on factors such as the severity of the alleged crimes, the location of their commission, the timing of the requests, and Kwon’s citizenship.
Reaction from Kwon’s Legal Team
Kwon’s legal team has raised concerns about extradition, claiming that the Montenegrin justice system violated his fundamental rights by refusing to decide on their requests, infringing on their client’s rights to defense and legal remedy.
Implications of the Decision
The extradition decision marks a potentially significant development in the case, which has been ongoing for months. Kwon faces charges related to the collapse of TerraUSD and Luna tokens, which caused approximately $40 billion in losses. In June, a US court fined Kwon $4.5 billion after failing to settle the civil lawsuit with the SEC.
South Korea’s Interest in Prosecution
South Korea has also signaled a strong interest in prosecuting Kwon, with the Appellate Court previously upholding a decision to prioritize South Korea’s extradition request over the US. However, the Montenegrin government has ultimately decided to extradite Kwon to the US.
Source: Cryptoslate.com