In a recent development on the global cryptocurrency scene, Do Kwon, the former CEO of Terraform Labs, responsible for Terra (LUNA), faces an uncertain judicial future. After months of evasion, Kwon was detained in Montenegro, marking a significant turning point in the case.
Earlier this year, the US Securities and Exchange Commission (SEC) brought serious charges against Terraform Labs and Kwon. They were accused of orchestrating a complex fraud involving cryptocurrencies, focusing on an algorithmic stablecoin and other securities. A SEC, in his statement, emphasized that cryptocurrencies were presented as securities to investors, raising questions about the legitimacy of the entire Terra ecosystem.
The charges against Kwon are predominantly securities fraud, unregistered securities offerings and other related violations. Additionally, the SEC alleged that Kwon withdrew more than 10.000 Bitcoin (BTC) from Earth during this tumultuous period.
Kwon was arrested in March when he tried to enter Montenegro with forged documents, receiving a four-month prison sentence. Now, he is on the threshold of being held internationally accountable for his actions. The court in Podgorica, capital of Montenegro, confirmed approval of Kwon's extradition to South Korea or the United States. The final extradition decision is in the hands of the Minister of Justice of Montenegro.
This case gained even more complexity with the confirmation by the High Court of Montenegro of the prison sentence of Kwon and his associate Han Chang-Joon for falsifying documents. After an appeal was rejected, the sentence was considered appropriate, increasing the likelihood that Kwon would be extradited to face charges in one of these countries.
