Do Kwon, the co-founder of Terraform Labs and the figure at the center of the TerraUSD (UST) stablecoin collapse in May 2022, is set to face charges in South Korea after a Montenegrin court ruled in their favor regarding his extradition. This decision marks the culmination of a complex legal battle that saw both South Korea and the United States vying for Kwon’s extradition to stand trial for their respective charges against him, news reports said.
Following the catastrophic implosion of the Terra ecosystem, which resulted in billions of dollars in investor losses, both South Korea and the United States issued warrants for Kwon’s arrest. South Korea accused him of financial crimes related to the ecosystem’s collapse, while the US Securities and Exchange Commission (SEC) filed a wide-ranging securities fraud lawsuit against him.
However, Kwon’s whereabouts remained shrouded in mystery for a period, with reports suggesting he was “on the run” across various countries. This ended with his apprehension in Montenegro, where he was sentenced to prison for using a fake passport. This unexpected turn of events further complicated the extradition process, as both South Korea and the United States filed requests for his extradition from Montenegro.
Initially, a Montenegrin court ruled in favor of the United States’ request, much to the disappointment of South Korean authorities who had filed their request earlier. However, Kwon’s defense team successfully appealed this decision, arguing that the previous ruling was based on misinformation regarding the timing of extradition requests. This successful appeal paved the way for the recent ruling in favor of South Korea.
With the legal battle settled, the South Korean National Police Agency has wasted no time in seeking assistance from Interpol, the international law enforcement agency, to expedite Kwon’s extradition. While Interpol’s response is still pending, this latest development signifies a significant step towards holding Kwon accountable for his alleged role in the TerraUSD debacle.
