Terraform Creator Do Kwon to be Extradited to the US
Terraform creator Do Kwon, who was arrested in Montenegro in March 2023 and sentenced to a few months in prison over passport forgery charges, will be extradited to the United States, according to Montenegrin Justice Minister Bojan Božović.
Kwon has been fighting his extradition to the US for more than a year, as the US and South Korean governments have sought to take custody of him to face criminal charges related to the collapse of the algorithmic stablecoin Terra/Luna system in 2022, which led to a series of high-profile collapses, including that of FTX.
Background
The collapse of the Terra/Luna system, which was once worth over $60 billion, was a significant event in the crypto industry, causing widespread losses for investors and leaving many wondering about the future of the sector.
Montenegrin Supreme Court Decision
According to a statement from Božović, the Montenegrin Supreme Court ruling was the basis for the decision to extradite Kwon to the US. The statement read:
“Bearing in mind the verdict of the Supreme Court, the Ministry of Justice considered all the facts and circumstances and assessed criteria such as the gravity of the criminal acts, the place of execution, the order of submission of the request, the citizenship of the requested person, the possibility of further extradition to another country, as well as other circumstances. The US bid met these criteria.”
Previous Legal Developments
The US bid to extradite Kwon has been met with a series of back-and-forth decisions about where he should be sent. In August of this year, the Appellate Court of Montenegro ruled that Kwon should be sent to South Korea, but the US has continued to push for his extradition.
SEC Settlement with Tai Mo Shan
Meanwhile, the legal fallout for Terra continues in the US. Last week, the Securities and Exchange Commission (SEC) settled charges with Tai Mo Shan, a subsidiary of Jump Crypto, alleging that Tai Mo Shan sold LUNA as a security. The company will pay $123 million as part of the settlement.
Conclusion
The extradition of Do Kwon to the US is a significant development in the ongoing legal saga surrounding the collapse of the Terra/Luna system. The US and South Korean governments have been seeking to take custody of Kwon for over a year, and the Montenegrin Supreme Court’s decision has cleared the way for his extradition to the US. The legal fallout for Terra continues, with the SEC settlement with Tai Mo Shan being the latest development in the case.
FAQs
- Q: What is the significance of Do Kwon’s extradition to the US?
A: Kwon’s extradition to the US is significant because it marks the end of a long and contentious legal battle between the US and South Korean governments over who should take custody of him. - Q: What were the charges against Kwon?
A: Kwon was arrested in Montenegro in March 2023 and charged with passport forgery. - Q: What is the significance of the collapse of the Terra/Luna system?
A: The collapse of the Terra/Luna system was a significant event in the crypto industry, causing widespread losses for investors and leaving many wondering about the future of the sector. - Q: What is the status of the legal proceedings against Kwon?
A: Kwon will be extradited to the US to face criminal charges related to the collapse of the Terra/Luna system.
