Do Kwon’s Extradition Appeal Canceled by Appeal Court

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The move to extradite Terraform Labs co-founder Do Kwon to either the United States or South Korea to face criminal charges has been put on hold as a Montenegro Appellate court has suspended an earlier ruling approving his extradition.

As announced, the court accepted the appeals of Do Kwon’s counsel and annulled the November 17, 2023 judgment on grounds of significant violations of the criminal procedure provisions. The Appeal Court in its ruling said the High Court failed to adhere to the provisions of the law that required it to inform Do Kwon of the extradition reasons and present him with an opportunity for his defense.

Consequently, the case will now return to the Podgorica Basic Court for retrial. Notably, the court mentioned that the decision to extradite Do Kwon solely rests on the nation’s Minister of Justice. In addition, the court has the right to only prescribe the requirements for his extradition.

Community Reacts to Court Ruling

Following the Court’s ruling members of the community have alleged corruption in the extradition case.     

According to court documents filed by U.S. Attorney Damien Williams, he was charged with eight felony counts, including merchandise fraud, securities fraud, wire fraud, and conspiracy to commit fraud and market manipulation.

DoJ Opens a Case Into Terraform Labs

The Wall Street Journal reported in March that the US Department of Justice (DOJ) had opened a case into Terraform Labs complying with the collapse of its stablecoin, TerraUSDClassic (USTC).

Similarly, the case was reported in February when the SEC fastened its crypto fraud case by filing a lawsuit against Terraform Labs and its co-founder over fraud allegations. Following Kwon’s arrest in Montenegro, he was charged with fraud by US authorities in New York.

Meanwhile, early this month, Terraform Labs and its co-founder found themselves entangled in a legal web as a mysterious whistleblower from Jump Crypto reportedly assisted the SEC in constructing a fraud case against them.

Historic Arrest of Do Kwon

In particular, Do Kwon was stopped at the airport in Podgorica while attempting to board a flight to Dubai with his business partner Hon Chang Joon. The Montenegrin Interior Ministry later tweeted that Kwon had used counterfeit Costa Rican travel documents. As such, both individuals were detained by local law enforcement while they were departing Montenegro for Dubai on a private plane. 

The crypto entrepreneur was charged with fraud by US authorities in New York following his detention in Montenegro. However, Do Kwon claimed he was unaware that the passport he was traveling with was reportedly fake and instead blamed a Chinese agency.

Also, a lawsuit against Kwon was filed in Singapore in October by more than 350 investors who cumulatively lost more than $57 million as a result of Terraform Labs’ terraUSD collapse.

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