Bitrabo Editorial
After a lengthy legal battle lasting 16 months, the Montenegrin Court of Appeal has decided to extradite cryptocurrency entrepreneur Do Kwon to South Korea, denying a similar extradition plea from the United States.
Do Kwon Set to Stand Trial in South Korea
Do Kwon, the co-founder of the now-defunct Terraform Labs blockchain platform, has been under scrutiny internationally following the collapse of his company’s Luna and TerraUSD cryptocurrencies, causing an estimated $40 billion loss in investor funds. Both South Korean and US authorities have sought Kwon’s extradition, accusing him of orchestrating a significant fraud.
The ruling by the Montenegrin court on August 1 is a win for South Korean prosecutors who have been pursuing Kwon since his evasion in September 2022. This marks the end of a legal battle in Montenegro that began with Kwon’s arrest at Podgorica airport in March 2023.
Local media reports indicate that the judge prioritized South Korea’s extradition request over the US one due to the timing of submission in accordance with Montenegro’s extradition agreement with South Korea, which holds precedence over the US agreement.
Kwon’s lawyer, Goran Rodić, stated, “This is the second court decision on Do Kwon’s extradition to South Korea, following the law and international treaties governing extradition for criminal prosecution or serving a sentence.”
Following Kwon and his partner Chang Joon’s sentencing to four months in Montenegro for trying to escape with forged passports, Kwon has been awaiting the extradition outcome in Podgorica. Chang Joon has already been extradited to South Korea.
Legal Challenges Continue for Do Kwon
Beyond Montenegro, Kwon’s legal issues persist. In April, a New York jury found Kwon and Terraform Labs culpable for civil fraud, agreeing with the SEC’s claims of misleading investors, leading to a $4.5 billion settlement with the SEC.
Despite the civil settlement, the US government persisted in pushing for Kwon’s extradition and criminal prosecution in Montenegro. However, the recent Montenegrin Supreme Court ruling is a setback for US authorities.
The blockchain’s native token Luna Classic (LUNC) is currently trading at $0.00007379, down more than 9% in the last 24 hours. The token has also dropped 15% and 8% over fourteen and thirty-day periods, respectively.
Featured image from DALL-E, chart from TradingView.com