Terraform Labs Co-Founder Do Kwon Released in Montenegro Amid Pending Fraud Allegations
Summary:
Do Kwon, co-founder of Terraform Labs, has been released from a Montenegrin prison while facing fraud allegations in South Korea and the United States. Released on March 23, his extradition to South Korea is under review by the Supreme Court Council. Kwon's legal representative confirms his client's release, with Kwon's passport seized to prevent him from leaving the country. His extradition awaits further court discussions in the Balkan nation with no timeline provided. If found guilty in the U.S, Kwon is likely to face eight felony charges for his suspected role in a $40 billion collapse involving TerraUSD's algorithmic stablecoin in 2022.
Montenegro's Supreme Court has temporarily halted the extradition process for South Korean entrepreneur, Do Kwon. Facing fraud charges in both the United States and South Korea, the Terraform Labs co-founder was set free on March 23. This follows his incarceration linked to the alleged fraud in Terra Luna, which is believed to have led to a roughly $60 billion loss in the 2022 market value. Upon his release, the prison's director, Darko Vukcevic, stated that having finished serving his sentence for traveling with counterfeit documents, Kwon was then handed over to law enforcement for foreign citizens, for further discussions.
Kwon's freedom is linked to the Supreme Court Council's decision, which is currently assessing whether Kwon should be extradited to South Korea, his birth country, where he may face less stringent penalties compared to the United States. Prosecutors in the latter region are intent on holding Kwon accountable for the $40 billion collapse of TerraUSD's algorithmic stablecoin in 2022.
Confirming Kwon's release was his legal representative, Goran Rodic. Kwon's passport has been confiscated to keep him from leaving Montenegro, as reported by the local state television. He was subsequently moved to a facility for foreign nationals post-release. Rodic is pushing for Kwon's continued freedom while the extradition decision process ensues.
Montenegro's chief prosecutor's challenge against allegations favoring South Korea has delayed the extradition process, with court discussions still pending and no definite timeline present. If found guilty in the U.S, Kwon, who was arrested for using forged travel documents alongside former Terraform Labs CFO Han Chang-joon, could face eight felony charges. Though both U.S and South Korean authorities have requested Kwon's rendition to face fraud charges in their territories, a conclusive decision has yet to be reached.
Published At
3/24/2024 5:38:54 PM
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