0
0
U.S. Prosecutors to Challenge Montenegro’s Decision on Terra Founder’s Extradition
U.S. prosecutors have expressed their intention to contest the decision made by Montenegro’s High Court regarding the extradition of Do Kwon, the founder of Terra, back to his home country of South Korea. The Justice Department issued a statement emphasizing their commitment to seeking Kwon’s extradition in adherence to applicable international agreements, bilateral arrangements, and Montenegrin legislation.
The High Court of Montenegro recently ruled that Do Kwon could be extradited to South Korea once he completes his ongoing prison term at Spuž prison. This decision followed the Court of Appeals’ dismissal of a plea to extradite Kwon to the United States. Kwon has faced legal ramifications in Montenegro after his arrest and conviction for using a falsified passport.
The extradition matter has set the stage for a legal battle involving U.S. and South Korean prosecutors vying for jurisdiction over Kwon. Charges against Kwon in both countries stem from the crisis in Terra’s ecosystem in 2022, precipitated by the disconnection of the algorithmic stablecoin TerraUSD (UST) from the U.S. dollar. The subsequent collapse of Terra’s LUNA cryptocurrency catalyzed market turbulence leading to substantial financial losses and initiating an enduring bear market.
The prosecution in the U.S. and South Korea have lodged charges against Kwon, notably citing violations of capital markets regulations. The severity of these charges could result in Kwon serving lengthy prison sentences, as suggested by a representative from South Korea’s financial crime investigation bureau.
Do Kwon is simultaneously entangled in a federal criminal trial in New York and faces a civil lawsuit from the U.S. Securities and Exchange Commission (SEC). The ongoing extradition dilemma between the United States and South Korea has escalated to Kafkaesque proportions, with uncertainty looming over the resolution of the legal quagmire.
Kwon’s extradition to the U.S. has encountered legal pushbacks, with lower court approvals being revoked by the appellate court. The Court of Appeals attributed the annulment of the High Court’s initial ruling to procedural ambiguities arising from the sequence in which the extradition petitions from the U.S. and South Korea were submitted.
Moreover, a cohort of South Korean investors who claim to have suffered financial losses due to Terra’s collapse have advocated for Kwon’s extradition to the United States. In an online statement, these investors argue that Kwon would face more substantial consequences in the U.S., citing concerns that any sentence pronounced in South Korea may be subject to reduction upon a legal appeal.
Image/Photo credit: source url
