US prosecutors have expressed their intention to challenge a recent decision by the high court of Montenegro regarding the extradition of Do Kwon, former director of Terraform Labs, to South Korea.
Tl;dr
- The US DOJ and South Korea seek Kwon’s extradition.
- The Montenegro Court of Appeal overturned the extradition to the United States.
- Kwon faces fraud charges related to the collapse of the Terra ecosystem.
- The Terra Classic community is working to restore trust after the TerraUSD collapse.
An International Legal Duel for Kwon
Kwon, a central figure in the Terra cryptocurrency ecosystem, is facing legal proceedings in the US and South Korea, with each country requesting his extradition. The US Department of Justice (DOJ) has shown support for Montenegrin authorities’ cooperation in upholding the rule of law.
A Controversial Extradition
On February 21, the High Court of Podgorica ruled in favor of his extradition to the US. However, this decision was overturned by the Montenegro Court of Appeal due to “significant violations of criminal procedural provisions”, redirecting Kwon’s fate towards South Korea.
Fraud Allegations
At the center of this legal conflict are eight charges against Kwon, including allegations of fraud and market manipulation related to the $40 billion collapse of the Terra ecosystem. Kwon, who was apprehended by Montenegrin authorities for traveling with a fake Costa Rican passport, also faces fraud and violation of financial market laws accusations by South Korea.
Towards Restoring Trust
As Kwon navigates these legal storms, the Terra community, now rebranded as Terra Classic, is working towards rebuilding and restoring investor trust following the TerraUSD collapse in May 2022. Measures taken include the introduction of token burning mechanisms to reduce the overall supply of LUNA and the development of new collaborations with different decentralized projects and applications to enhance the utility of LUNA and encourage its adoption within the web3 ecosystem.