Do Kwon to be extradited to US as South Korea request overturned

abdelaziz Fathi

Terraform Labs co-founder Do Kwon is set to be extradited to the United States to face fraud charges related to massive losses suffered by U.S. investors due to its algorithmic stablecoin collapse.

Terraform Labs co-founder Do Kwon

The High Court in Montenegro has opted to send Kwon to the U.S., turning down South Korea’s extradition request, as reported by the local news outlet Pobjeda.

This development follows Kwon’s arrest in Montenegro in March 2023 for attempting to leave the country with a fake passport. Initially, Kwon consented to extradition to South Korea, but a Podgorica court later ruled in favor of his extradition to the U.S. Moreover, Kwon faced a Montenegro court’s judgment in June, sentencing him to four months in prison for document forgery, a decision he unsuccessfully appealed.

The trial concerning these fraud allegations, initially scheduled for January 29, has been postponed to late March. This delay stems from Kwon’s legal team’s difficulties in securing his release from Montenegro.

Earlier this month, the Court of Appeals once again revoked the extradition of Do Kwon to South Korea or the United States. This decision follows an appeal by Kwon’s defense attorneys, marking the second time the court overturned the extradition decision initially made by the country’s High Court in December.

The legal proceedings against Kwon have been ongoing since last year. The SEC charged Terraform Labs and Kwon in February over the collapse of TerraUSD and Luna in May 2022, which led to the loss of $40 billion in investor wealth. South Korean prosecutors have levied similar charges against Kwon and Terra affiliates.

Do Kwon successfully appealed a prior extradition decision on December 14, challenging the High Court’s November 17 ruling that deemed the extradition requests legally valid. Following a reaffirmation of the extradition’s validity by the High Court on December 29, Kwon’s defense re-appealed in January.

The Appeals Court identified procedural flaws in the extradition request handling, notably the ambiguous order of arrival of the requests from South Korea and the U.S., as well as the High Court’s failure to provide clear reasons and facts in its decision.

Read this next

Chainwire

Kadena Announces Annelise Osborne as Chief Business Officer

Kadena, the only scalable Layer-1 Proof-of-Work blockchain, expands its leadership team by onboarding Annelise Osborne as Kadena’s new Chief Business Officer (CBO).

Fintech

TNS brings full-stack market data management to EMEA

“We are also delighted to have Ben Myers join our London-based TNS Financial Markets team as Head of Strategic Sales for EMEA, to bolster our presence in the region.”

Chainwire

Velocity Labs and Ramp Network facilitate fiat to crypto onramp on Polkadot via Asset Hub support

Velocity Labs is proud to announce a fiat to crypto onramp using Ramp Network through the integration of Asset Hub. Through it, Ramp will be able to service any parachain in the Polkadot ecosystem.

Executive Moves

INFINOX hires Mayne Ayliffe as Global Head of HR

“I look forward to working with our teams around the world to develop a strategic HR agenda that supports high performance and is centred on human motivation.”

Fintech

Sterling to provide risk and margin support for fixed income

“Firms must have the tools to effectively manage their risk across all asset classes. As yields rise, we see more exposure from clients in the fixed income space. We understand their need to measure and mitigate risk in a highly regulated environment.”

Retail FX

FXOpen launches HK share CFDs: Tencent, Alibaba, Xiaomi, Baidu

Hong Kong share CFDs will be commission-free for a limited period of time.

Retail FX

IronFX Celebrates an Award-Winning Start to 2024 with a Series of Industry Recognitions

IronFX, a global leader in online trading, has embarked on 2024 with a spectacular display of accolades that highlight its commitment to excellence and innovation in the competitive financial services sector.

Industry News

FIA urges CFTC to regulate use cases rather than AI itself

“We urge the CFTC to refrain from crafting new regulations that generally regulate AI because this approach presents certain well-known pitfalls. By approaching the issue from the perspective of AI as a technology, rather than the use case for the technology, corresponding regulations would likely necessitate a definition of AI. We anticipate that any attempt to properly define AI would be very challenging and require considerable resources.”

Education, Inside View

The Power of Public Relations in Finance: Shaping Perceptions & Building Reputation

It’s safe to say that the finance industry has faced its share of reputation crises over the years, from the 2008 financial collapse to the many scandals around irresponsible lending, political corruption, and even Ponzi schemes. 

<