Montenegro Prosecutors Challenge Extradition of Terraform Labs Co-founder Do Kwon to South Korea
Summary:
Do Kwon, co-founder of Terraform Labs, may not be extradited to South Korea due to a challenge by Montenegrin prosecutors. They claim the appellate court exceeded its powers in rejecting Kwon's appeal and only the Supreme Court can make the final decision. Kwon prefers extradition to South Korea over the U.S., where he could face criminal charges linked to Terraform Labs. He was arrested in March 2023 for falsified travel documents and has been in custody since as extradition requests from the U.S. and South Korea are examined. U.S. enforcement agencies are increasing actions against crypto-related crime.
The extradition of Do Kwon, Co-founder of Terraform Labs, to South Korea to face criminal charges may be avoided following an intervention by Montenegrin prosecutors that could escalate the case to the national Supreme Court. The prosecutors declared on March 21 that they have appealed to the Supreme Court of Montenegro seeking a legality protection to halt Kwon's extradition to South Korea. Their argument is that the appeal court bypassed due process when it dismissed an appeal lodged by Kwon's lawyers, asserting that only the Supreme Court possesses the jurisdiction to rule in this matter.
Courts in Montenegro have been considering whether Kwon should be extradited to either the United States or South Korea where he may be criminally charged because of his part in the collapse of Terraform Labs. His extradition to South Korea was looking likely following a ruling on March 20. Nonetheless, prosecutors posited that the supreme court has the power to alter the Court's ruling. According to the prosecutor's statement in translation, the court unlawfully opted for a shortened procedure instead of a full process and exceeded its authority by deciding to permit the extradition, a decision that exclusively lies within the jurisdiction of the Justice Minister.
Kwon, a native of South Korea, seemingly favoured being extradited to his home country rather than the U.S. In the fallout of Terra's crash in 2022, the South Korean government has been inflicting severe punishments on those linked to crimes related to cryptocurrency. In the U.S., noteworthy figures in the world of cryptocurrency, including Sam Bankman-Fried, Changpeng Zhao, and Alex Mashinsky, have been convicted, admitted guilt or are facing trial at court for their roles at FTX, Binance, and Celsius respectively.
In March 2023, Kwon was arrested in Montenegro due to the use of fraudulent travel documents, after which he was handed a four-month prison sentence and has remained in custody as the country evaluates extradition requests from the U.S. and South Korea.
Several people affiliated with Terraform Labs, including co-founder Hyun-seong Shin, have been indicted by South Korean authorities. The company's former CFO, Han Chang-joon, was arrested in Montenegro concurrently with Kwon, but he was extradited to South Korea in February. Meanwhile, U.S. enforcement agencies are intensifying their efforts to clamp down on crypto-related crime.
Published At
3/21/2024 10:32:38 PM
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