Outside Source
The Terraform Labs co-founder was arrested in Montenegro in 2023 for using falsified travel documents as the courts determined whether he would go to the US or South Korea.
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Montenegrin authorities handed over Terraform Labs co-founder Do Kwon to United States law enforcement officers after a months-long fight over where or whether he would be extradited.
In a Dec. 31 X post, Montenegrin Prime Minister Milojko Spajić said Kwon was in US custody, suggesting that he would soon be traveling to the United States to face criminal charges.
The handover happened four days after Montenegrin Justice Minister Bojan Božović approved the Terraform co-founder’s extradition to the US instead of accepting a petition from South Korea, where Kwon also faces charges and holds citizenship.
“Our nation welcomes innovation and legitimate crypto, AI and other tech entrepreneurs — but we have zero tolerance for fraud,” said Prime Minister Spajić. “This extradition demonstrates our unwavering commitment to international justice and the rule of law.”
Statement from Montenegro’s prime minister on Do Kwon’s extradition. Source: Milojko Spajić
Kwon was one of the individuals alleged to have been involved in the 2022 collapse of the Terra ecosystem, which likely contributed to a significant crypto market downturn the same year.
Authorities in the US and South Korea filed charges against Kwon and some Terraform executives, but the co-founder’s whereabouts were largely unknown until he was arrested in Montenegro in 2023.
After serving four months in prison for using falsified travel documents, Kwon was in legal limbo for more than a year as Montenegro’s courts considered whether to have him remain in the country or be extradited to the US or South Korea. Every time it appeared a court had reached a decision, Kwon’s legal team filed an appeal on different grounds, delaying potential extradition and forcing officials to revisit the matter.
Related: SEC nets record $8.2B in enforcement, mostly from Terraform Labs
As part of a civil case brought by the US Securities and Exchange Commission, Terraform and Kwon were found liable for fraud in April. Both agreed to pay roughly $4.5 billion in disgorgement, civil penalties and prejudgement interest.
The US Justice Department charged Kwon with eight felony counts in March 2023, including commodities fraud, wire fraud and conspiracy to engage in market manipulation. It’s unclear when he could appear in a courtroom after his extradition from Montenegro.
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This article first appeared at Cointelegraph.com News
