The Montenegrin Constitutional Court has reportedly dismissed an appeal by Korean cryptocurrency mogul Do Kwon regarding his extradition, effectively closing off another legal route for the Terraform Labs co-founder. This decision marks a significant development in the ongoing extradition case and highlights the complexities of cross-border accountability in crypto.
Background on the Terra Luna Collapse
The Terra Luna ecosystem collapsed in May 2022, erasing about $40 billion in market value. The event sparked investigations into allegations of fraud, market manipulation, and securities law violations. Kwon was arrested in Montenegro in March 2023 while attempting to use a forged passport.
Kwon’s Legal Battle
Kwon’s legal battle began after the collapse of the Terra Luna ecosystem. He has been at the center of global investigations since then, with United States and South Korean authorities accusing him of fraud and other financial crimes linked to the $40 billion Terra Luna crash. Both countries have requested his extradition.
Montenegro Court Decision
According to a report by Korea JoongAng Daily, the unanimous court decision cited legal inconsistencies in Kwon’s appeal, effectively upholding an earlier ruling favoring his extradition. The Montenegro court’s decision means that Kwon’s legal fate hangs in the balance as the international extradition case will potentially set a precedent for cross-border accountability in crypto.
Related Developments
- Montenegro halts Do Kwon’s extradition again ahead of appeal ruling: The Montenegrin government had previously halted Kwon’s extradition, citing concerns over the fairness of the process.
- Ongoing legal battle since Terra Luna collapse: The case has been ongoing for several months, with various developments and twists along the way.
The SEC Lawsuit
In April, a US court found Terraform Labs and Kwon liable for fraud in a case initiated by the US Securities and Exchange Commission (SEC). The SEC had charged him with knowingly misleading investors and reckless mishandling of customer funds. As part of the settlement, Terraform Labs agreed to pay the SEC about $4.47 billion.
Kwon’s Involvement
Kwon was found liable for $110 million in disgorgement fines, $80 million in civil penalties, and about $14.3 million in pre-judgment interest fines as part of the settlement plan.
Montenegrin PM Involvement with Terraform Labs
Almost a week after the Terraform Labs settlement with the SEC, findings from an April court document sparked controversy regarding the involvement of Montenegrin Prime Minister Milojko Spajic with the crypto firm. The report revealed that Spajic had invested $75,000 to purchase 750,000 TerraLUNA tokens from the firm in April 2018.
Conclusion
The Montenegro Constitutional Court’s decision has significant implications for Kwon’s legal fate and sets a precedent for cross-border accountability in crypto. As the extradition case continues, it will be interesting to see how this development unfolds and what impact it may have on the global crypto community.
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