Terraform Labs Co-Founder Do Kwon to be Released Amid Extradition Deliberations
Summary:
Terraform Labs co-founder, Do Kwon, is set to be released from Montenegro prison while decisions on his possible extradition to the U.S. or South Korea continue. His release requires surrendering his travel documents. Kwon was arrested in 2023 for using fake travel documents. He might face eight felony charges in the U.S or be implicated in fraud and breaking capital markets laws in South Korea. Prosecutors plan to seize Kwon's passport following the collapse of Terra, during which he allegedly used a forged Costa Rican passport.
Do Kwon, co-founder of Terraform Labs, is set to be released from prison in Montenegro, as reported by the news outlet Vijesti on March 22. After a year behind bars, Kwon is expected to be freed on March 23, however, he will be ordered to hand over his travel papers to ensure he stays within the country's borders. The release decision reportedly comes from the Supreme Court Council, who is deliberating over Kwon's potential extradition to either the United States or his homeland, South Korea.
Kwon was apprehended in Montenegro in March 2023 following the use of counterfeit travel documents along with his associate and ex-CFO of Terraform Labs, Han Chang-joon. The U.S and South Korean authorities both lodged extradition appeals to prosecute Kwon for fraud, yet the case remains unresolved.
Should he be sent to the United States, Kwon may face eight felony charges previously presented by prosecutors in March 2023. On the other hand, in South Korea, Kwon risks being implicated in fraud and breaking capital markets laws. The location of his possible extradition remains uncertain at present.
As part of their case, prosecutors allegedly intend to seize Kwon’s South Korean passport, an initiative regarding which there was an application in 2022, following Terra's demise. Reports suggest that Kwon used a faked Costa Rican passport in Montenegro – a fact that Kwon challenges, and which led to his arrest in 2023. Co-founder of Terraform Labs, Shin Hyun-Seong, commonly known as Daniel Shin, and several others linked to the platform, are facing trials on accusations of investor fraud. Shin remained in South Korea subsequent to Terra's collapse in May 2022, an incident which attracted regulatory attention and resulted in a substantial plummet in the crypto market.
Published At
3/22/2024 11:27:03 PM
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