Do Kwon, Terraform Labs’ co-founder, is reportedly on the verge of being extradited to the United States to face criminal charges rather than South Korea.
According to sources close to the situation, the extradition request made by US authorities is expected to be approved by Montenegro’s Justice Minister Andrej Milovi.
Kwon, sentenced to four months in Montenegro for using false travel documents, is implicated in Terraform Labs’ demise, prompting charges in both the United States and South Korea.
According to the Wall Street Journal on December 7th, Montenegro’s Justice Minister Andrej Milovi is inclined to approve the US extradition request.
This decision’s official announcement is expected to be made public promptly. Kwon will face eight counts related to his role at Terra if extradition is granted, including commodities fraud, securities fraud, wire fraud, conspiracy to deceive, and market manipulation.
In addition to the charges Kwon faces in the United States, the Securities and Exchange Commission (SEC) accused him in February of “defrauding investors in crypto schemes.”
Terraform Labs’ decoupling of TerraUSD (UST) from the US dollar in May 2022 triggered a crypto market slump and the bankruptcy of numerous crypto companies.
Kwon’s arrest in Montenegro in March sparked speculation about his whereabouts, with initial speculation pointing to Singapore.
Despite the impending extradition to the United States, legal experts believe Kwon may face charges in South Korea. Kwon insists on his innocence, claiming that he did not commit fraud.
An appeal against the extradition has been filed, and the Montenegrin Court of Appeals will rule on the matter soon.