According to Bloomberg, Do Kwon, the founder of Terraform Labs, will be extradited to South Korea this weekend, but the South Korean government may still reach an agreement with the United States to have him tried in New York first.
Do Kwon was initially sentenced to four months in prison in Montenegro for using a fake passport. After completing his sentence, both the United States and South Korea applied for his extradition. However, according to the latest statement from the court cited by Bloomberg, the favorable ruling made by the Supreme Court in favor of South Korea is correct because South Korea was the first to request Do Kwon’s extradition and meet “other criteria.”
This is a victory for Do Kwon and his defense team, as they prefer to be extradited to South Korea, where the punishment for white-collar crimes is lower than in the United States. Do Kwon was arrested in Montenegro in March 2023 for traveling with a fake passport. Han Chang-jun, the former CFO of Terraform Labs, has also been transferred to South Korea for trial. He is accused of creating a false illusion of Terra’s normal operations and profiting over 53.6 billion Korean won (approximately $40.26 million) behind the scenes.
Goran Rodic, Do Kwon’s lawyer in Montenegro, stated, “This is the final decision, and there will be no further appeals. We are satisfied with the court’s ruling, which demonstrates its respect for the rule of law.” He also pointed out that the next step is the actual transfer, which requires coordination between the justice departments and respective police officers of South Korea and Montenegro.
The U.S. Securities and Exchange Commission (SEC) civil lawsuit against Do Kwon and Terraform Labs is scheduled for March 25. They are accused of orchestrating cryptocurrency securities fraud involving billions of dollars through TerraUSD (UST), Terra, and other assets.
Do Kwon will also face criminal charges. U.S. prosecutor Damian Williams previously presented eight charges, including commodities fraud, securities fraud, wire fraud, and conspiracy to commit fraud and market manipulation.
Even if Do Kwon is extradited to South Korea, the South Korean government may still reach an agreement with the United States to have him tried in New York first. The United States may claim that it has a stronger ability to recover Do Kwon’s assets worldwide and agree to share these assets with South Korea.
References:
– Do Kwon confirms extradition to the United States, facing multiple charges from the SEC and prosecutors.
– Terraform Labs seeks bankruptcy protection, tokens such as LUNA fall.
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Do Kwon
Terraform Labs
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