- The U.S. request to extradite former Terraform Labs CEO Do Kwon was denied by the Court of Appeals in Montenegro, the appeals court said in a statement on Thursday.
- For months, Kwon’s attorneys, the courts, and the prosecution have disagreed about the best place to extradite the former executive.
The former CEO of Terraform Labs, Do Kwon, was ordered to be transferred to South Korea by a Montenegron appeals court, who rejected the United States’ plea to extradite him.
In a statement issued on Thursday, the Montenegrin Court of Appeals stated that the ruling rendered by the High Court of Podgorica in late June was validated.
For months, Kwon’s attorneys, the courts, and the prosecution have disagreed about whether the former executive should be extradited. According to reports, Kwon and his attorneys have chosen to remain in South Korea, where financial offenders are normally sentenced to between 30 and 40 years in prison. In the meantime, the United States adheres to the idea that a court may impose successive terms for any crime for which a person is found guilty.
In March 2023, Kwon was taken into custody in Montenegro for attempting to board a trip to Dubai using a forged passport and fictitious travel credentials from Costa Rica.
Kwon is the subject of criminal charges from both the United States and South Korea. In February 2023, the U.S. Securities and Exchange Commission filed charges against Terraform and Kwon about the algorithmic stablecoin Terra LUNA -3.23% USD (UST), which experienced a collapse a year prior, resulting in losses amounting to $40 billion. In May, Terraform and Kwon settled with the SEC for $4.47 billion. The corporation will have to pay $420 million in civil penalties in addition to $3.58 billion in disgorgement. Its co-founder, Do Kwon, would also be prohibited from holding an officer or directorship in any publicly traded company by the settlement terms.
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