Cryptocurrency Entrepreneur Do Kwon Facing Extradition
The case of Do Kwon, a cryptocurrency entrepreneur, has taken a new turn as a court in Montenegro approved his extradition on Friday. The decision now lies with the justice minister, who will determine whether Kwon will be handed over to South Korea or the United States, both of which want him.
Criminal Charges and Arrest
Kwon, who is facing charges of multibillion-dollar fraud in the U.S., was also sentenced to four months in prison in June for using forged passports. The arrest of Kwon and his ally led to the discovery of doctored Costa Rican passports, a separate set of Belgian passports, as well as laptop computers and other devices in their possession.
Denial of Charges and Legal Response
During a hearing in May, both defendants denied the charges brought against them by the Montenegrin prosecutor. Kwon’s lawyers did not immediately respond to requests for comment when the U.S. charges were announced. However, a spokesperson for the company he founded, Terraform Labs, expressed intentions to fight the “misguided and deeply flawed” U.S. allegations.
Extradition Approval and Final Decision
The High Court in Podgorica announced on Friday that Do Kwon had agreed to be extradited to South Korea under an abbreviated procedure. However, the final decision lies with the justice minister, considering multiple states have requested his handover. The court also stated that the decision will be made after Kwon completes serving his prison sentence for document forgery.
Legal Representation and Background
Kwon’s lawyer in Podgorica was not immediately available for comment. As a South Korean national and former CEO of South Korea-based Terraform Labs, Kwon’s company, known for the stablecoin TerraUSD, collapsed in May 2022, causing turmoil in cryptocurrency markets. Kwon was detained in late March while attempting to board a flight to Dubai from Podgorica.
Ongoing Legal Proceedings and Scrapped Bail
Following Kwon’s arrest, the U.S. District Court in Manhattan made public an eight-count indictment against him for securities fraud, wire fraud, commodities fraud, and conspiracy. In late May, a Montenegrin court scrapped a bail of 800,000 euros for Kwon and his ally, citing it as an insufficient guarantee of their appearance in court and their promise not to flee once released from detention.
As the legal proceedings continue, the fate of Do Kwon remains uncertain, with both South Korea and the U.S. seeking his extradition. The case has garnered attention in international cryptocurrency and legal spheres, and the final decision by the justice minister will have far-reaching implications for Kwon and the parties involved.
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