Montenegro Rejects Do Kwon’s Appeal, US Extradition is Likely

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As a researcher with extensive experience in the digital asset market and its intricacies, I find myself both intrigued and concerned by the latest developments in the Do Kwon extradition case. The decision by Montenegro’s Constitutional Court to reject Kwon’s appeal against his extradition is a significant step forward in the process, but it also underscores the complexities of cross-border enforcement in the crypto world.

The Constitutional Court of Montenegro has denied an appeal by Do Kwon, co-creator of Terraform Labs, regarding his extradition. This ruling effectively eliminates a substantial legal hurdle in the extradition proceedings.

According to reports, the decision was said to be consensus-based. It identified issues with Kwon’s appeal and upheld an earlier verdict favoring extradition.

Do Kwon is Likely to be Extradited to the US

The decision regarding the extradition of Kwon now rests with Montenegro’s Minister of Justice. He will decide whether Kwon should be sent to South Korea or the United States. Recent Korean reports indicate a higher probability that Kwon may be extradited to the US, as this seems to align with the stance of the justice ministry.

As an analyst, I find myself delving into a shared interest between two nations concerning Kwon. They both seek him for allegations stemming from the downfall of Terraform Labs’ digital economy, which encompassed the TerraUSD and Luna coins. The catastrophic crash in May 2022, with an estimated $40 billion evaporating from the market, places it among the most monumental financial collapses ever recorded in history.

2022 saw a significant event unfold, as the fall of UST stablecoin triggered what became known as the “crypto winter.” This incident had far-reaching consequences, revealing questionable practices on prominent platforms such as FTX and Celsius. Consequently, this sparked increased scrutiny from regulators worldwide regarding stablecoins and DeFi (Decentralized Finance) on a global scale.

In March 2023, Kwon was apprehended in Montenegro as he tried to travel using a counterfeit passport. This arrest raises the possibility that his extradition proceedings could set an important precedent for enforcing laws across borders when it comes to crimes involving cryptocurrencies.

The Largest Financial Settlement in SEC History

Back in June 2024, Terraform Labs struck a deal with the SEC, agreeing to fork over a staggering sum of $4.47 billion. This settlement consisted of three main components: a fine of $3.6 billion for returning ill-gotten gains, a civil penalty amounting to $420 million, and an additional $467 million in interest before the ruling.

Moreover, the court mandated that Do Kwon personally shoulder a fine of approximately $200 million in penalties. This amount comprised of a $110 million disgorgement fee, $80 million in civil penalties, and an additional $14.3 million in accrued interest.

As a crypto investor, I’ve been keeping a close eye on developments regarding Kwon, given the recent rumors about his alleged political connections in Montenegro. In 2023, the country’s prime minister requested an investigation into accusations that Kwon had financial ties to a political adversary. This news has certainly piqued my curiosity and I will be watching this situation closely.

It is said that Kwon allegedly backed the Europe Now party, which is headed by Milojko Spajic. This support has sparked queries regarding possible interference in the extradition proceedings.

In summary, the court’s verdict moves Kwon a step closer towards being held accountable for his actions, at the same time underscoring the complexities involved in synchronizing international law within the cryptocurrency sector.

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2024-12-26 05:34