Montenegro’s minister of justice will make the final decision on Do Kwon’s extradition to either South Korea or the United States.
#DoKwon the entrepreneur tied to the collapse of 40 billion crypto token TerraUSD is facing potential extradition to either the US or South Korea following a court ruling in Montenegro.
The South Korean #cryptocurrency founder has been detained in Montenegro since June after attempting to leave the country using a forged passport. His departure was prompted by an investigation in his home country regarding the sudden downfall of TerraUSD and its associated token, $LUNA which caused a ripple effect in the crypto market, impacting various entities such as Voyager Digital and #Celsius Network.
Kwon's attempt to leave Montenegro on a Costa Rican passport led to his apprehension, resulting in a four-month prison sentence. Both the US and South Korea are seeking his extradition on fraud charges.
The Higher Court in Podgorica stated that Montenegro's Minister of Justice will determine which country holds priority in Kwon's extradition due to multiple appeals from different nations.
In the US, Kwon faces eight criminal counts, including securities, commodities, and wire fraud. Moreover, the Securities and Exchange Commission has filed civil charges against him for allegedly orchestrating a cryptocurrency fraud leading to substantial losses.
Kwon and his company, Terraform Labs, operated the TerraUSD #stablecoin designed to bridge traditional and crypto markets for easier digital coin #trading
The stablecoin was meant to track the dollar's value using algorithmic coding without requiring hard assets as backup.
The debacle surrounding TerraUSD elevated Kwon's notoriety within the crypto industry. Following his flight from the investigation, Interpol issued a red notice for his arrest. South Korea also revoked his passport and issued an arrest warrant for alleged violations of capital market rules after the token's collapse.
The collapse of TerraUSD has drawn renewed attention from regulators on stablecoins, a core element in crypto trading. US Treasury Secretary Janet Yellen highlighted the rapid growth and associated risks of stablecoins in the wake of this incident.
