Montenegro Court Orders Extradition of Crypto King Do Kwon to South Korea, Rejects US Bid
Yahoo Finance6 months ago
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Montenegro Court Orders Extradition of Crypto King Do Kwon to South Korea, Rejects US Bid

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Summary:

  • Montenegrin appeals court upholds extradition of Do Kwon to South Korea.

  • US bid for extradition rejected amid a lengthy legal battle.

  • Do Kwon faces fraud charges linked to a $40 billion cryptocurrency collapse.

  • Kwon was arrested with fake passports while trying to flee to Dubai.

  • The collapse of TerraUSD and Luna resulted in massive losses for investors.

Key Legal Decision

A Montenegrin appeals court has upheld a lower court's ruling to extradite Do Kwon, the founder of Terraform Labs and dubbed the 'cryptocurrency king,' back to South Korea. This decision comes after a lengthy legal battle and follows the rejection of a request for his extradition to the United States.

Background of the Case

Do Kwon, who was arrested in Montenegro last year, has been at the center of a complex legal saga involving multiple rulings from various Montenegrin courts. Both South Korea and the U.S. sought his extradition due to allegations of fraud related to a catastrophic $40 billion collapse of Terraform Labs’ cryptocurrency, which significantly impacted retail investors globally.

Charges Against Do Kwon

Kwon faces fraud charges in the U.S. filed by federal prosecutors in New York, stemming from the implosion of Terraform's digital currencies. He was arrested along with another South Korean while attempting to flee to Dubai with fake Costa Rican passports. Kwon has already served time in Montenegro for using a counterfeit passport.

The Financial Impact

The TerraUSD, intended to be a stablecoin pegged to stable assets like the dollar, lost its peg, leading to a dramatic loss of market value for investors. Approximately $40 billion was wiped out from the combined market of TerraUSD and its sibling currency, Luna.

While the Montenegrin Appeals Court's decision is legally binding, the timeline for Kwon's extradition remains uncertain. This ruling marks a significant moment in the ongoing scrutiny of cryptocurrency regulations and accountability in the financial sector.

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