A Montenegrin appeals court has upheld a lower court’s decision to extradite Do Kwon, the founder of Terraform Labs, to South Korea. This ruling comes after a series of legal battles and conflicting court decisions regarding Kwon’s extradition.
According to Korea JoongAng Daily, the unanimous court verdict found legal irregularities in Kwon’s appeal, thereby confirming a previous ruling in favor of extradition.
Kwon, known as the “cryptocurrency king,” is wanted in South Korea on charges of fraud related to the collapse of Terraform Labs’ cryptocurrency, TerraUSD (UST), and its affiliated token, Luna, in 2022. The collapse, which wiped out billions of dollars in investor value, has been described as one of the biggest crypto market crashes in history.
Kwon was arrested in Montenegro last year while attempting to travel to Dubai using a forged passport. He was subsequently sentenced to four months in prison for using false documents.
The US and South Korea have both sought Kwon’s extradition. However, the Montenegrin courts have consistently favored South Korea’s request, citing the principle of “special and more compelling reasons” for extradition.
The latest ruling by the appeals court clears the way for Kwon’s extradition to South Korea, where he will face trial on charges of fraud and violating capital-market laws. The extradition process is expected to take several weeks or months to complete.
Kwon’s legal team has vowed to appeal the decision to the European Court of Human Rights. However, the prospects of success are uncertain, as the European Court rarely intervenes in extradition cases.
This ruling marks a significant development in the ongoing saga of Do Kwon and the collapse of Terraform Labs. It also highlights the increasing scrutiny of the cryptocurrency industry by regulators around the world.
