A court in Podgorica, Montenegro, has granted approval for the extradition of Do Kwon, the founder of Terra, to either South Korea or the United States. Kwon, who was arrested in Montenegro in March, awaits a final decision by the Montenegrin Justice Minister after serving a four-month prison sentence for document forgery.
Extradition Decision Post-Prison Term
Following his arrest in Montenegro, Kwon faces multiple fraud charges by U.S. federal prosecutors. He also deals with civil charges in the U.S. and an ongoing investigation in South Korea linked to the collapse of terraUSD last year. The Montenegro High Court recently upheld Kwon’s four-month prison sentence for document falsification, denying their appeal and setting the stage for potential extradition to South Korea or the U.S. post-incarceration.
Legal Troubles for Terra
In April, Daniel Shin, co-founder of Terraform Labs, was indicted in South Korea for violating capital markets laws, resulting in prosecutors freezing $185 million in assets. Shin, however, denied involvement in the collapse of the company, asserting his departure two years prior.
Ongoing Legal Saga
Kwon’s extradition approval adds another chapter to the ongoing legal saga surrounding Terra and its key figures. The final decision by the Montenegrin Justice Minister will determine whether Kwon faces legal proceedings in the U.S. or South Korea after completing his prison term.
This development underscores the international legal ramifications for cryptocurrency figures and their involvement in financial controversies, with regulatory bodies and courts coordinating across borders to address alleged fraudulent activities.