The end seems near for Do Kwon, co-founder of Terraform Labs. His extradition to the USA has now been approved by the Montenegrin authorities, bringing him one step closer to a long-awaited trial in the crypto sector.
Montenegrin Justice Minister in favor of Kwon’s extradition to the U.S.
Do Kwon is heading for a conviction in the case linked to the collapse of his empire. According to Wall Street journal the Minister of Justice of Montenegro, Andrej Milovic, expressed his intention to extradite Kwon to the United States.
However, the South Korean national will first have to serve a 4-month sentence in a Montenegrin prison for using false passports. Next, the extradition authorization filed last September by the US Justice Department will be implemented.
In the United States, his arrival is eagerly awaited by the New York federal prosecutor and the SEC, accusing him of aggravated fraud and price manipulation leading to the $40 billion collapse of the stablecoin TerraUSD in May 2022. Kwon faces up to 20 years in prison cumulatively if convicted.
Confirmation of Do Kwon’s extradition to the United States would represent a setback for South Korea. The South Korean authorities were also seeking extradition to face charges of fraud and market manipulation in their country. However, the US government seems to have had the last word in this legal tug-of-war.
It remains to be seen what strategy Kwon will adopt once on American soil: will he plead guilty and negotiate his sentence, or will he claim his innocence, risking a fate similar to that of Sam Bankman Fried? In any case, his trial promises to be as high-profile as Bankman’s recently convicted of fraud in the United States.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.
