Do Kwon to Be Extradited to South Korea Amid Legal Turmoil

The collapse of the algorithmic stablecoin TerraUSD (UST) and its sister token, LUNA, resulted in over $40 billion in investor losses. This event led to legal action against Do Kwon, co-founder of Terraform Labs, who subsequently fled South Korea.

Extradition Ruling

Do Kwon was apprehended in Montenegro, prompting extradition requests from both South Korea and the United States. On August 1, the Montenegro Appellate Court upheld a decision to extradite Kwon to South Korea.

This decision followed a previous ruling in December 2023, which determined that Kwon met the legal criteria for extradition to both countries. The appellate court clarified that South Korea's earlier submission of the request played a decisive role in the final ruling.

Legal Proceedings

Kwon's legal issues began in March 2023, when he was arrested at the Podgorica airport in Montenegro, attempting to travel to Dubai with a forged passport. He and his business partner, Chang Joon, were sentenced to four months in prison.

Chang Joon was extradited to South Korea in February 2024.

In addition to the South Korean charges, the U.S. Securities and Exchange Commission (SEC) charged Kwon and Terraform Labs with fraud in March 2023. The SEC accused them of misrepresenting the stability of UST and its integration with a Korean mobile payment app.

In April 2024, a New York jury found Kwon and Terraform Labs liable for civil fraud, consistent with the SEC's allegations. Despite a $4.5 billion settlement between Terraform Labs and the SEC, the United States continued to seek Kwon's extradition.

Ongoing Legal Challenges

The United States plans to contest the extradition ruling, indicating that legal battles are far from over. Kwon could potentially face multiple sentences in different jurisdictions, reflecting the complex nature of his legal situation.