Do Kwon's Legal Hassle Intensifies: Terraform Labs Co-founder Fights Extradition Verdict
Summary:
Co-founder of Terraform Labs, Do Kwon, is currently involved in an ongoing legal battle, where his lawyers have filed an appeal against a high court decision. This verdict left the choice of his extradition to the U.S. or South Korea at the discretion of Montenegro's justice minister. Montenegrin authorities arrested Kwon for using fake travel documents while trying to leave the country. In the U.S., the SEC won a civil trial for fraud against Terraform and Kwon, and now aims to secure a $5.3 billion judgment, with $100 million in personal civil fines for Kwon. Terraform Labs' bankruptcy in 2022 resulted in a considerable crypto market downturn.
The legal troubles of Do Kwon, co-founder of Terraform Labs, are ongoing, with his lawyers recently appealing a high court verdict that leaves the issue of his possible extradition to either the United States or South Korea in the hands of Montenegro's justice minister. This was reported by Montenegrin media entity Vijesti on the 23rd of April. The appeal stems from an April 8 ruling by the High Court in Podgorica, which enabled Justice Minister Andrej Milović to make a decision on Kwon's extradition. This came in wake of Montenegro's Supreme Court allowing a legality protection request post a lower court's approval of Kwon's potential extradition to South Korea.
Kwon's legal representation has dubbed the high court's ruling as unlawful and unfounded, going as far as calling its interpretation of law ludicrous. It's not yet clear if the appeal will halt discussions concerning Kwon's extradition, which have been ongoing between higher and lower courts for some time, punctuated by numerous motions and appeals filed by his lawyers.
Do Kwon was arrested in March of 2023 by Montenegro authorities for using fabricated travel documents while trying to leave the country. As its determined who holds the power to approve his extradition to either the U.S. or South Korea, where he's facing criminal charges, Kwon is reportedly at liberty to travel within Montenegro.
The U.S. Securities and Exchange Commission (SEC) successfully prosecuted Terraform and Kwon for fraud in a civil trial in the United States, following which the SEC announced its intentions to pursue a $5.3 billion judgment, including personal civil penalties amounting to $100 million against Kwon.
Terraform Labs' fall in 2022 led to a significant downturn in the cryptocurrency market, resulting in companies such as FTX, BlockFi and Celsius declaring bankruptcy. Terraform sought Chapter 11 protection in the United States in January of 2024.
Published At
4/24/2024 10:34:28 PM
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