Terraform Labs co-founder Do Kwon could be extradited to South Korea or the US after a Montenegro court approved the process. The verdict was rendered by the High Court of Podgorica and the fugitive crypto entrepreneur’s fate now lies with the Montenegro Justice Department.
While Kwon prefers extradition to his native South Korea, he’s also wanted by US authorities. According to the court, the decision on where the former Terraform Labs CEO ends up will be taken by the country’s Minister of Justice.
Kwon is currently serving a four month jail term following charges of document forgery, which means his extradition will come after he completes his 4-month sentence.
Wanted by both South Korea and the United States
In South Korea, Kwon faces criminal charges on financial services and capital markets violations, including fraud. In the US, he’s been indicted at the District Court of the United States of the Southern District of New York. Criminal offenses include wire fraud and conspiracy to commit fraud.
Before his arrest and imprisonment in Montenegro, Do Kwon had been on the run since September 2022. News of a “Red Notice” by the Interpol saw him go into hiding. South Korea and the US had both indicted Kwon following the collapse of TerraUSD (UST) and Luna in May, an implosion that sank the $40 billion Terra crypto ecosystem.
The collapse saw massive contagion across the industry, with major crypto lenders and hedge funds including Three Arrows Capital, Celsius Network and Voyager, going down.
Notable persons to come under fire for various crypto crimes since these events include former Celsius CEO Alex Mashinsky, FTX founder and CEO Sam Bankman-Fried (recently found guilty on seven counts) and Barry Silbert (Digital Currency Group boss sued by the New York Attorney General).
Former Binance CEO Changpeng Zhao is also facing charges in the US. He stepped down this week as his exchange agreed a $4.3 billion settlement with the US Department of Justice (DOJ).
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