Gushiken Yona
In a decisive ruling that ends months of legal wrangling, a Montenegro court has ordered the extradition of disgraced crypto mogul Do Kwon to his native South Korea. The decision, announced Thursday, rejects a competing bid from the United States to secure Kwon for prosecution.
It said in a statement: “The Appellate Court of Montenegro, ex officio examining the decision of the High Court in Podgorica Kv. no. 632/24 dated June 28, 2024 in the case of the extradition of the citizen of the Republic of Korea Kwon Do Hyeong, confirmed the said decision in the part in which the extradition of this defendant was refused petitioners of the USA.”
The court’s decision prioritized South Korea’s request due to its earlier submission compared to the U.S. request. This outcome also affirms the previously approved expedited extradition procedure for Kwon’s transfer to South Korea.
This decision concludes a months-long legal battle between the two nations vying for Kwon’s extradition. “There was no appeal against the aforementioned decision, so the decision of the High Court in Podgorica, in the part in which extradition is allowed in a shortened procedure at the request of the Republic of Korea, is legally binding,” the court said.
With no appeal options available, the path is now clear for Kwon’s transfer to South Korea to face charges related to the collapse of the TerraUSD stablecoin.
Kwon, the co-founder of the now-defunct Terraform Labs, has been at the center of a global manhunt following the catastrophic collapse of the TerraUSD stablecoin, which wiped out billions of dollars in investor funds. His arrest in Montenegro in March while attempting to flee the country with forged documents marked a significant turning point in the saga.
South Korea has been persistent in its pursuit of Kwon, alleging fraud and market manipulation in connection with the Terra ecosystem’s collapse. The country’s authorities argued that the primary events leading to the cryptocurrency crisis occurred within its jurisdiction.
Kwon’s legal situation in the United States had seen significant developments recently. A U.S. District Court judge approved a settlement between the Securities and Exchange Commission (SEC), Terraform Labs, and Kwon, requiring them to pay $4.5 billion in disgorgement and civil penalties. This settlement also includes a permanent ban on buying and selling crypto asset securities for Kwon and Terraform Labs. This decision follows a jury finding Terraform Labs and Kwon liable for fraud related to the $40 billion collapse of the Terra ecosystem in May 2022.
In a recent statement regarding the Terraform Labs case, SEC Chair Gary Gensler emphasized the significance of economic realities in determining securities under the law. Gensler stated, “This case affirms what court has said: The economic realities of a product — not the labels, the spin, or the hype — determine whether it is a security under the securities laws.”
Read More
- Terra’s Troubles Deepen: After Do Kwon’s Scandal, Another $4M+ Wipeout
- Do Kwon’s Fate Sealed? Montenegrin Court Greenlights Extradition, Likely to the US
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Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
