Do Kwon’s extradition to South Korea has been confirmed after the US appeal was rejected by the Appellate Court. This decision comes after a lengthy legal battle that began in Montenegro over a year ago. The Higher Court’s June ruling, which prioritized South Korea’s extradition request over that of the US, has been upheld.
Kwon, the co-founder of Terraform Labs, is now facing charges in South Korea related to the collapse of his crypto projects, TerraUSD and LUNA. These collapses in 2022 resulted in significant financial losses for investors worldwide.
After being arrested in Montenegro in March 2023 for using falsified travel documents, Kwon was sentenced to four months in prison for document forgery. Both South Korea and the US submitted extradition requests soon after his arrest. The Higher Court of Podgorica initially approved Kwon’s extradition to either country in November 2023, leaving the final decision to the Montenegrin Minister of Justice. However, Kwon’s defense team contested the decision, leading to a series of appeals and retrials.
In March, the Court of Appeals of Montenegro overturned the decision to extradite Kwon to the US, leading to a retrial to determine the appropriate extradition destination. Ultimately, the High Court ruled in favor of South Korea’s request based on the order of submission.
In addition to the extradition proceedings, Do Kwon and Terraform Labs have reached a tentative settlement with the US Securities and Exchange Commission (SEC) regarding fraud charges. This settlement comes after a jury verdict in April found them guilty of defrauding investors by misrepresenting the stability of TerraUSD. The SEC announced in June that Kwon and Terraform Labs will pay over $4.5 billion in penalties.
Despite the SEC settlement, Kwon still faces significant legal challenges. The US Department of Justice has charged him with criminal fraud related to the collapse of Terraform Labs, while South Korea has levied charges of fraud, bribery, and market manipulation. The extradition to South Korea marks a crucial step in the ongoing legal saga surrounding Do Kwon and his involvement in the crypto industry.