Court Approves Terra’s Do Kwon Extradition to U.S. and South Korea

• Montenegro’s justice minister will decide on Do Kwon’s extradition.
• Do Kwon is serving a four-month prison term in the country for document forgery.
• A Montenegro court said requirements for Do Kwon’s extradition to the U.S. or South Korea have been met.

Troubled Terraform Labs (TFL) founder Do Kwon’s extradition to either South Korea or the United States has been approved by a Montenegro court. The court located in Podgorica decided that the extradition requirement had been satisfied.

According to updates posted on the judiciary’s website, the Montenegrin Justice Minister will make the final decision on extradition. However, Do Kwon will still complete his prison sentence in Montenegro.

Earlier this year, the crypto founder was arrested at Podgorica’s airport with falsified documents in an attempt to flee the country. Following his arrest, Do Kwon was given a four-month sentence for document forgery.

Outside the Southeastern European country, Do Kwon is wanted by prosecutors in the U.S. and South Korea. Notably, the founder faces charges on multiple allegations in regard to the TerraUSD collapse.

In the U.S., Kwon faces multiple counts of fraud and civil charges. South Korean prosecutors have also made similar charges against the founder and his close associates. Earlier in April, Dan Shin, TFL’s co-founder – was indicted in South Korea for capital markets law violations. The prosecutors froze his assets, worth around $185 million, following the indictment.

Kwon’s possible extradition will mark a significant development in investigations into a crash that shaped the crypto market last year. The TerraUSD collapse precipitated a crypto winter that wiped billions off the crypto market. This was worsened by an FTX collapse towards the close of the year.

It bears mentioning that crypto regulations, expectedly, picked up following the crashes. So far, countries across the world have introduced several regulatory frameworks to guide crypto activities in their territories. At the same time, crypto founders and firms faced increased scrutiny from regulators.

Recently, a U.S. court found FTX’s founder, Sam Bankman-Fried, guilty of market manipulation and money laundering charges. Bankman-Fried’s sentencing is set for March 28, 2024, and the once-golden kid of the crypto ecosystem could face decades in prison.

Elsewhere, Binance founder Changpeng Zhao loomed in similar waters after he pleaded guilty to an anti-money laundering law violation. Zhao’s sentencing is also set for next year, with speculation that the founder could also see a jail term.