Appeal Fails: Do Kwon to Be Extradited to South Korea

The legal battle surrounding the extradition of Do Kwon, co-founder of Terraform Labs, to his home country South Korea has reached its conclusion. The Appeals Court of Montenegro recently rejected Kwon’s appeal, approving South Korea’s extradition request for him to face criminal charges related to the collapse of the algorithmic stablecoin TerraUSD (UST) in May 2022.

The appeals court ruling denying Kwon’s appeal came after the initial extradition decision to South Korea in early March. Although Kwon’s legal team filed an appeal, it was not accepted. The final ruling by Montenegro’s Supreme Court has ended the extradition dispute, forcing the Terraform founder to face justice in the land of Kimchi.

As early as June 2022, just a month after the collapse that sent shockwaves through the cryptocurrency market with a total loss of $60 billion in market capitalization for both the LUNA token and the UST stablecoin, South Korean authorities launched an investigation into Terraform Labs and Do Kwon. The process of gathering evidence, interviewing former employees, and investigating the company was conducted urgently, focusing on allegations of tax evasion.

At the time of the incident, Do Kwon declared that he took “full responsibility for the failure of Terra” and had hired lawyers in South Korea to prepare for potential lawsuits. However, according to initial reports, the former CEO had already left Singapore, where Terraform’s headquarters was located, with his whereabouts unknown.

In March 2023, Do Kwon was arrested at Podgorica Airport in Montenegro, along with former Terraform Labs CFO Han Chang-joon, for using fake passports to leave the country, and was sentenced to four months in prison. From that point, the “battle” for extradition between the United States and South Korea unfolded over the past year.

Many believed that if extradited to the United States, the trial process would be more favorable in addressing the allegations from the U.S. Securities and Exchange Commission and the Department of Justice against Do Kwon and Terraform Labs. Meanwhile, the South Korean government was determined to prosecute Do Kwon on multiple financial charges, including securities fraud, in his home country.

According to Bloomberg, Do Kwon’s lawyer, Goran Rodic, confirmed that the ruling to extradite him to South Korea is the final decision, which neither the U.S. nor Kwon himself can appeal further. However, the specific timeline for handing over Do Kwon has not been set.

Montenegro’s courts confirm a ruling that South Korea’s extradition demand for disgraced crypto mogul Do Kwon has priority over a similar demand by the US https://t.co/ZmvzzEE2LU

— Bloomberg (@business) March 20, 2024

This outcome is the result of efforts by the National Police Agency of South Korea and the Ministry of Justice, who have contacted Interpol to facilitate the extradition of the fallen leader of the Terra DeFi project to face trial in the country of kimchi.

Introduction to Do Kwon and LUNA Price Movements

Do Kwon, born on September 6, 1991, in Seoul, South Korea, is the co-founder and former CEO of Terraform Labs, the company behind the TerraUSD stablecoin and the LUNA cryptocurrency. In May 2022, the collapse of this duo wiped out nearly $45 billion in market capitalization within just a week, causing hundreds of billions of dollars in losses for the broader cryptocurrency market.

Currently, LUNA is the native token of the new Terra 2.0 blockchain version launched after this catastrophic event.