U.S. and South Korea vying for Do Kwon trial; extradition destination uncertain U.S. and South Korea vying for Do Kwon trial; extradition destination uncertain
The Terra and Luna founder faces charges in multiple countries.
2 min read
Updated: Jul. 20, 2023 at 2:24 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The U.S. and South Korea both aim to prosecute Terra founder Do Kwon, making his next destination unclear, according to a report from Bloomberg on March 29.
Kwon faces charges in multiple countries
Currently, Kwon is being held in Montenegro. Ongoing court proceedings in the country are now determining where Kwon will go to face trial.
Montenegro justice minister Marko Kovac said the seriousness of Kwon’s crimes, the location of his offenses, and the order of requests will determine Kwon’s next destination.
Kwon’s citizenship will also come into play, according to Kovac. Though he did not elaborate, Kwon is a citizen of South Korea and is not believed to have dual citizenship with the U.S. This presumably is one point in favor of extradition to South Korea.
In the United States and South Korea, Kwon faces assorted charges of fraud related to his failed cryptocurrency and stablecoin company Terraform Labs.
Bloomberg noted that the U.S. and South Korea do not have extradition agreements with Montenegro but have other international arrangements. The two nations could also come to an agreement, and Kwon himself could challenge extradition.
Furthermore, Kwon was initially arrested in Montenegro, where he was charged with traveling with false documents. As such, he may need to serve time in Montenegro on those charges before he faces the justice systems of either country.
Terra collapse occurred nearly one year ago
Terra originally collapsed in May 2022, and these latest proceedings are just one part of the investigation into the project and its founders.
The U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC) are both probing the collapse of Terra. Singapore is investigating the matter as well. Terra co-founder Daniel Shin is also wanted by authorities.
Terra’s UST stablecoin has long lost its dollar peg and is now valued at $0.02. Terra Luna Classic (LUNC) has also lost virtually all of its value since May 2022 but nevertheless maintains a market cap of $733 million, making it the 67th largest cryptocurrency.
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Mike Dalton
Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada's West Coast.
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Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems.
Terraform Labs
Terraform Labs is a startup that created Terra, a blockchain protocol and payment platform used for algorithmic stablecoins.
Do Kwon began his professional journey as an engineer, contributing to tech giants Apple and Microsoft.