Nikolas Sargeant
A Montenegrin official has reported that the U.S. has emerged victorious in the tug-of-war over Do Kwon's fate. Following his central role in the crisis that led to the drastic decline of Terra (LUNA) to near absolute zero, Do Kwon, the former CEO of Terraform Labs, fled South Korea and remained off the grid for several months.
Despite his disappearance from his home country, Do Kwon maintained an active presence on Twitter, using the platform to post tirades holding SBF and others responsible for the collapse of his platform. Approximately a year ago, he even asserted that the allegations against his platform had been debunked. Regrettably, for him, his optimistic view was not shared by his community.
Taken Into Custody In Montenegro
Following his escape from the country through Abu Dhabi, Do Kwon found himself on Interpol's wanted list, leading him to lay low in Europe and potentially other locations for several months. However, earlier this year, Montenegrin border officials apprehended him as he tried to flee to Costa Rica.
During his capture, Do Kwon had a counterfeit passport. Despite claiming ignorance about the passport being a forgery, the former crypto mogul was sentenced to four months in jail for his attempted escape.
The Subject Of Inquiry In South Korea And The United States
Upon being taken into custody, a diplomatic tug-of-war ensued between U.S. and Korean authorities, both vying for Kwon's extradition to stand trial. Last month, Montenegrin officials confirmed Kwon's imminent extradition but remained uncertain about his ultimate destination. However, a recent Wall Street Journal report reveals that Kwon is slated to be extradited to the U.S.
Montenegrin Justice Minister Andrej Milović made the decision, though an official statement from the minister or his cabinet is yet to be released. Once extradited, Kwon will face fraud charges filed by the SEC last February. The SEC's complaint alleges that the Terraform ecosystem was a fraudulent scheme, not genuinely decentralized or financial, but rather a manipulation of a so-called algorithmic "stablecoin."
It's crucial to note that extradition to the U.S. does not automatically absolve Kwon of charges in his home country. Even if tried and sentenced in the U.S., Kwon could still face judgment and sentencing in absentia in South Korea.
