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Coinpaprika 2024-12-26 21:50:38

Do Kwon Faces Likely Extradition to the US After Appeal Rejected

Do Kwon Faces Likely Extradition to the US After Appeal Rejected

Montenegro's Constitutional Court has denied Do Kwon's appeal against extradition, removing a key obstacle in his case . The court unanimously rejected his claims, citing legal shortcomings in his arguments and supporting a prior ruling favoring extradition. The final decision now rests with Montenegro’s justice minister, who will determine whether Kwon will be extradited to the United States or South Korea. Reports suggest extradition to the US is more likely , reflecting the justice ministry’s stance. Kwon faces serious charges related to the collapse of Terraform Labs’ crypto ecosystem, including the TerraUSD and Luna coins. The market crash in May 2022 erased nearly $40 billion in value, making it one of the largest financial collapses in history. The failure of the UST stablecoin also triggered the infamous "crypto winter" of 2022, exposing malpractice at platforms like FTX and Celsius. This collapse has drawn global regulatory attention to stablecoins and decentralized finance. In March 2023, Kwon was arrested in Montenegro while attempting to travel with a forged passport. His case is seen as a precedent for international collaboration in prosecuting cryptocurrency-related crimes. Earlier this year, Terraform Labs settled with the SEC for $4.47 billion, the largest financial settlement in the agency's history. This included $3.6 billion in disgorgement fines, $420 million in civil penalties, and $467 million in interest. Kwon himself was ordered to pay over $200 million, consisting of $110 million in disgorgement fines , $80 million in civil penalties, and $14.3 million in interest. Reports also suggest Kwon has potential political ties in Montenegro, raising questions about his influence on the legal process. In 2023, Montenegro's prime minister called for an inquiry into allegations that Kwon financially supported the Europe Now party, led by Milojko Spajic, a political rival. This ruling has brought Kwon closer to extradition, setting the stage for a major legal showdown . It underscores the growing need for international cooperation to address cryptocurrency-related crimes.

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