- In a landmark decision, the Montenegrin Court of Appeal has ruled that cryptocurrency entrepreneur Do Kwon will be extradited to South Korea.
- This ruling resolves a 16-month legal battle involving parallel extradition requests from both South Korea and the United States.
- “This is the second legally binding court decision on the extradition of Do Kwon to South Korea,” stated Kwon’s lawyer, Goran Rodić.
The Montenegrin Court of Appeal’s ruling brings Do Kwon one step closer to facing trial in South Korea, marking a pivotal moment in the international efforts to prosecute him.
Montenegrin Court Favors South Korea in Extradition Decision
The Montenegrin Court of Appeal has decided to extradite Do Kwon, the infamous co-founder of Terraform Labs, to South Korea. This decision follows a prolonged legal struggle involving competing extradition requests from South Korea and the United States. Do Kwon has been under scrutiny since the collapse of his blockchain protocol, which resulted in a catastrophic financial loss estimated at $40 billion.
Legal Proceedings and Implications
Announced on August 1, the ruling signals a significant victory for South Korean prosecutors. Kwon has been a fugitive since September 2022, when he escaped following the collapse of TerraUSD and Luna cryptocurrencies. The Montenegrin court’s decision highlights that South Korea’s extradition request, being the first submitted, has precedence over the United States’ request in line with Montenegro’s international treaties.
Additional Legal Challenges and Sentencing
Do Kwon’s legal tribulations are far from over. In addition to the extradition ruling, he has already served a four-month prison sentence in Montenegro for attempting to exit the country using forged passports. Following the completion of this sentence, Kwon was placed in a foreigner detention center near Podgorica while awaiting the extradition decision. His business partner, Chang Joon, has already been extradited to South Korea.
Consequences in the United States
In parallel, Kwon faces substantial legal pressure from United States authorities. In April, a New York jury found Kwon and Terraform Labs guilty of civil fraud, concurring with the US Securities and Exchange Commission’s (SEC) allegations of investor deception. Terraform Labs has since settled civil charges with the SEC for $4.5 billion. Nonetheless, US authorities are still pursuing criminal charges and had hoped for his extradition.
Market Impact and Token Performance
In the wake of these legal entanglements, Luna Classic (LUNC), the native token of the now-defunct blockchain, has experienced significant market volatility. At present, LUNC trades at $0.00007379, reflecting a 9% decline over the past 24 hours and continued downward momentum over the past month.
Conclusion
The Montenegrin Court of Appeal’s decision marks a critical juncture in the legal battles surrounding Do Kwon, potentially paving the way for his prosecution in South Korea. While the focus shifts towards his trial in his home country, the global crypto community remains vigilant, recognizing the broader implications of this high-profile case for the cryptocurrency market.
