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Montenegro’s Supreme Court overturns extradition ruling for Do Kwon, co-founder of Terraform Labs, favoring US prosecution amidst fraud charges.
Montenegro’s Supreme Court overturns extradition ruling for Do Kwon, co-founder of Terraform Labs, citing procedural violations. The decision bolsters US prosecution efforts against Kwon, detained for alleged fraud linked to TerraUSD stablecoin collapse.
Jury finds Kwon liable for fraud in US lawsuit, underscoring regulatory scrutiny in cryptocurrency industry.
In a significant turn of events, Montenegro’s Supreme Court has recently overturned a previous ruling that aimed to extradite Do Kwon, co-founder of Terraform Labs Pte., to South Korea. The decision came after prosecutors appealed the lower court’s rejection of Kwon’s legal team’s appeal, citing procedural irregularities in handling extradition requests from both the United States and South Korea.
Specifically, the Supreme Court emphasized the importance of conducting an individual assessment of the legal grounds for extradition, stressing the need for thorough evaluation by the High Court in Podgorica. This reversal underscores the complexity and sensitivity surrounding extradition cases involving multiple competing requests from different jurisdictions, highlighting the meticulous legal procedures required in such matters.
Boost for US Prosecution Efforts
The recent ruling by Montenegro’s Supreme Court has provided a significant boost to US efforts to prosecute Do Kwon for alleged fraud charges related to the collapse of TerraUSD stablecoin in 2022. Kwon, who has been detained in Montenegro since March 2023 for traveling on a fake passport, faces extradition requests from both South Korea and the US.
The decision on extradition ultimately rests with Montenegro’s justice minister, with indications suggesting a leaning towards honoring the US extradition request. This development underscores the international collaboration and legal intricacies involved in prosecuting individuals accused of financial crimes across borders, reflecting the global reach of law enforcement efforts in combating fraudulent activities within the cryptocurrency ecosystem.
Jury Finds Kwon Liable for Fraud in US Lawsuit
Following a closely watched trial in New York, a jury has found Do Kwon and Terraform Labs liable for fraud in a lawsuit filed by the US Securities and Exchange Commission (SEC) concerning the company’s 2022 collapse. The trial revealed damning evidence of misconduct, concluding that Kwon and Terraform misled investors, resulting in substantial losses estimated at up to $40 billion in cryptocurrencies.
This verdict not only marks a significant legal victory for the SEC but also serves as a stark warning to individuals and companies operating within the cryptocurrency industry. It underscores the regulatory scrutiny and legal repercussions faced by those involved in fraudulent activities, highlighting the importance of transparency, accountability, and regulatory compliance in fostering trust and integrity within the evolving crypto market landscape.
