Do Kwon, the founder of Terraform Labs, has been released from prison in Montenegro after serving his sentence for possession of false documents. However, he remains assigned to a foreigners’ shelter pending a final decision on his extradition to South Korea or the USA.
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Do Kwon released by Montenegrin Supreme Court
After one year in detention, Do Kwonon founder of Terraform Labs was released from prison in Montenegro on Saturday, March 23, 2024, according to the report from Bloomberg. This release comes at a time when the Supreme Court deliberates on extradition requests made by South Korea and the United States.
The decision to release Kwon was taken by the Supreme Court Council, which must review a previous decision that could grant or refuse extradition to his native South Korea.
Kwon is facing allegations of fraud in both countries following the spectacular collapse of Terra-Luna in 2022, resulting in an estimated loss of several billion dollars.
U.S. and South Korean authorities have filed competing extradition requests for Kwon to be tried for fraud in their respective jurisdictions. If Kwon is extradited to the United States, he will probably face eight criminal charges filed by U.S. prosecutors in March 2023, including wire fraud and money laundering.
On the other hand, the penalties incurred by Kwon in South Korea are comparatively lighter than in the United States where prosecutors are seeking to prosecute him for his alleged role in the TerraUSD collapse.
Know transferred to a shelter for foreigners pending extradition decision
After his release, the authorities transferred Do Kwon to a shelter for foreigners, as reported by his lawyer Goran Rodic. The latter has expressed his intention to appeal to a court to keep his client at liberty until the Supreme Court decides on his extradition. Visit authorities confiscated Kwon’s passport to prevent him from leaving the country.
The Supreme Court undertook this action following a challenge by Montenegro’s chief prosecutor, who cited procedural errors in the rulings in favor of South Korea’s extradition request. Extradition to the USA or South Korea awaits further deliberation by the court, with no specific timetable provided after Friday’s announcement.
Do Kwon’s future therefore remains uncertain until the Supreme Court of Montenegro issues its final decision on his extradition.
Although the Minister of Justice of Montenegro has previously expressed his intention to extradite Kwon to the United States, and Kwon himself has asked the judge to refuse the SEC‘s extradition request, it is difficult to predict to which country he will be going.
However, given the seriousness of the charges against him in the USA and the pressure exerted by the American authorities, it is likely that Kwon will be extradited to the USA to stand trial. However, the decision rests with the Supreme Court of Montenegro, which will have to consider the legal arguments and evidence presented by all parties concerned before rendering its verdict.
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.
