Cryptocurrency Tycoon Do Kwon Faces Extradition to South Korea Following Montenegro Court Decision

In a recent development, a Montenegrin court has ruled that Do Kwon, the cryptocurrency mogul and founder of Terraform Labs, should be extradited to his native South Korea. This decision adds another layer to the ongoing legal saga that unfolded after Kwon’s arrest in Montenegro last year.

The High Court’s ruling comes just days after an appeals court reversed its previous decision to extradite Kwon to the United States. Kwon, 32, was apprehended based on an international arrest warrant related to a $40 billion crash of Terraform Labs’ cryptocurrency, causing significant losses for retail investors globally. Both South Korea and the U.S. have sought Kwon’s extradition from Montenegro.

Last month, the Montenegro High Court initially decided to hand Kwon over to the U.S. However, the Court of Appeals nullified this decision, citing procedural issues over the timing of extradition requests from the U.S. and South Korea. The High Court’s recent decision can be appealed again, leaving the timeline for a final ruling uncertain. Notably, Kwon is currently serving a four-month prison sentence in Montenegro for using a false passport.

Referred to as “the cryptocurrency king,” Kwon faces charges of fraud by federal prosecutors in New York, and South Korean prosecutors are also seeking his extradition. Kwon, along with another South Korean individual, was arrested at Montenegro’s Podgorica Airport on March 23, attempting to depart for Dubai using fake Costa Rican passports. The arrest was related to allegations of fraud and financial crimes connected to the collapse of Terraform’s digital currencies in May 2022.

TerraUSD, designed as a stablecoin pegged to stable assets like the dollar, experienced a drastic crash, wiping out around $40 billion in market value for holders of TerraUSD and its floating sister currency, Luna. The situation has triggered legal actions from multiple jurisdictions seeking accountability for the financial turmoil caused by the collapse.

As the legal proceedings continue, it remains to be seen how the extradition process unfolds, with potential appeals and challenges ahead. Kwon’s case highlights the international nature of cryptocurrency-related legal issues and the challenges in determining jurisdiction and extradition procedures.

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