The key figure behind Terraform Labs, Do Kwon, is set to face extradition either to South Korea or the United States following the approval of the court in Montenegro. The High Court in Podgorica has ruled that the Minister of Justice in Montenegro will be tasked with making the ultimate decision on the priority of extradition in a case that has garnered appeals from multiple states.
The final extradition decision, if approved by the Minister of Justice, will be executed after the completion of the criminal sanction imposed by the Basic Court in Podgorica. Kwon, the previously named defendant, was sentenced to four months of imprisonment for the criminal offense of document forgery under the Criminal Code of Montenegro.
Earlier, the Montenegro High Court dismissed appeals for the former CEO of Terra Blockchain and his associate, citing document forgery as the grounds for conviction. The collapse of TerraUSD, the stablecoin developed by Terraform Labs, a year ago marked a significant setback for the crypto industry, resulting in substantial losses for investors.
Following TerraUSD’s collapse, legal actions were initiated against Do Kwon and his team in various jurisdictions, including Korea, Singapore, and the United States. Both the South Korean and American governments have formally requested his extradition.
Do Kwon’s Fate Hangs In Balance
Senior South Korean prosecutor Dan Sunghan, leading the investigation, recently shared insights with the media, suggesting that Do Kwon might face extradition to the U.S. after serving his term in South Korea. Sunghan hinted at the potential for a sentence exceeding 40 years if all accusations in South Korea are taken into account. He emphasized that extradition to South Korea would be more conducive to justice and recovering damages for victims, as local authorities possess a more substantial body of evidence compared to their American counterparts.
Sunghan further asserted that Kwon could potentially receive “the longest sentence ever handed down in South Korea,” characterizing the case as the most significant financial fraud or securities fraud incident in the country’s history. The intricate legal proceedings surrounding Kwon underscore the gravity of the charges and the international ramifications of TerraUSD’s downfall.