U.S. DOJ Challenges Montenegro High Court's Decision on Do Kwon's Extradition to South Korea
Summary:
The U.S. Department of Justice is set to oppose a recent ruling by Montenegro's high court that prepares Terraform Labs' Do Kwon for extradition to South Korea, rather than the U.S. Both nations had lodged extradition requests for Kwon in March 2023. The U.S. charges against Kwon include fraud and market manipulation connected to the $40 billion Terra ecosystem collapse. South Korea, meanwhile, accuses him of fraud and capital markets law violations. Kwon's defence has earlier indicated his preference to be extradited to South Korea.
The United States Department of Justice (DOJ) announced it will challenge a recent decision by Montenegro's high court that set Terraform Labs' Do Kwon on track for extradition to South Korea. This information was shared by the DOJ with Bloomberg in a March 7 report, confirming its commitment to upholding international and bilateral agreements, as well as Montenegrin law, in its continuing efforts to seek Kwon’s extradition. The statement also showed gratitude towards Montenegrin authorities for their commitment to the rule of law.
Extradition requests for Kwon were jointly filed by the U.S. and South Korea in March 2023, leading to a tug-of-war for the initial extradition. In a Feb. 21 verdict, the High Court in Podgorica ruled that Kwon, Terraform Labs’ CEO, should be extradited to the U.S. However, two weeks later, the Montenegro Appeals Court flagged "significant violations of criminal procedure provisions" and reversed the previous verdict, putting Kwon on the path to South Korea.
The judicial system in Montenegro allows the U.S. to further appeal this decision to the Montenegro Supreme Court, the country's ultimate legal authority. Kwon is confronted with eight charges in the U.S., including fraud and market manipulation linked to the $40 billion collapse of the Terra ecosystem. Allegations in South Korea point to fraud and violations of capital markets law.
According to Kwon’s defence team, he prefers being extradited to South Korea to remain close to his family, even though he could potentially face a 40-year prison sentence there. The DOJ was unable to provide further comments to Cointelegraph.
In September 2022, South Korean authorities issued an arrest warrant for Kwon. He remained elusive until he was apprehended in March 2023 by Montenegro officials for utilizing a counterfeit Costa Rican passport. Following a brief period out on bail, Kwon was imprisoned for at least four months due to the passport fraud, and subsequently transferred to extradition custody.
Published At
3/8/2024 7:21:20 AM
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