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BTC Pulse 2024-12-31 20:34:15

Do Kwon in US Custody Following Montenegro Extradition Battle

Extradition Battle Co-founder of Terraform Labs Do Kwon was finally extradited to the U.S. after a long court battle in Montenegro. He was arrested in 2023 on charges of using falsified travel documents. In 2023, the U.S. and South Korea issued extradition requests for Kwon . On Dec. 31, Montenegrin Prime Minister Milojko Spajić announced that Kwon was transferred to US custody to bring the complex legal standoff to an end. Why the US and South Korea Wanted Kwon Kwon was at the center of the disastrous implosion of the Terra ecosystem in 2022. The incident resulted in billions of dollars in losses and contributed to a broader cryptocurrency market downturn. Regulators in the US and South Korea charged Kwon with fraud, conspiracy, and market manipulation. Until his arrest, there had been international interest in his whereabouts, but his location was not known. It was in Montenegro that he was arrested. Legal Challenges in Montenegro Kwon served four months in prison in Montenegro following his arrest for the use of fake travel documents. However, his legal status has remained very unclear since the courts debated over extradition to either the US or South Korea. Appeals from his legal team delayed the court proceedings by more than one year. Finally, the Justice Minister Bojan Božović approved extradition to the US on Dec. 27. Charges Kwon Faces in the US The US Justice Department charged Kwon with eight felony counts, including wire fraud, commodities fraud, and conspiracy to engage in market manipulation. In addition, the US Securities and Exchange Commission, earlier in 2023, found him and Terraform Labs liable for fraud and ordered them to pay around $4.5 billion in penalties, disgorgement, and prejudgment interest. Montenegro Committed to Justice Montenegrin Prime Minister Spajić outlined the commitment of the nation to international justice. “This extradition is a proof of our commitment to international justice and rule of law”, he said. What’s Next for Kwon? Far from over are all the legal battles with his extradition. He is expected to see US courts soon, when further developments in the case may emerge. Kwon’s case is a big example in crypto fraud enforcement worldwide. His case shows how many countries are collaborating to persecute such fraudsters.