Montenegro Court Ruling Clears Path for US Extradition of Do Kwon

Montenegro's Supreme Court has reversed previous decisions and agreed to extradite former Terraform Labs co-founder Do Kwon to the US, where he faces fraud charges related to the collapse of TerraUSD stablecoin. Kwon, who was arrested in Montenegro in March 2023 for traveling on a fake passport, had fought extradition to South Korea, where penalties for white-collar crimes are less severe. The decision comes as the US continues to crack down on fraud and misconduct in the cryptocurrency industry.

Montenegro Supreme Court Decision Paves Way for US Extradition of Do Kwon

In a significant development, Montenegro's Supreme Court has overturned previous decisions to extradite Terraform Labs Pte. Ltd.'s co-founder, Do Kwon, to South Korea. This decision bolsters the United States' efforts to prosecute Kwon on fraud charges related to the collapse of the TerraUSD stablecoin in 2022.

Kwon, a crypto industry figure, has been detained in Montenegro since March 2023 after being apprehended for using a counterfeit passport. His legal team has persistently advocated for his extradition to South Korea, citing the country's more lenient sentencing guidelines for white-collar offenses compared to the United States.

The Montenegro Supreme Court's ruling clarifies that the country's Justice Minister will ultimately determine Kwon's extradition destination after courts have assessed whether the necessary criteria are met. A source familiar with the matter revealed to Bloomberg in late February that the government intends to approve Kwon's extradition to the US.

The US Securities and Exchange Commission (SEC) initiated a lawsuit against Kwon and Terraform, alleging fraud related to the company's demise in 2022. A jury subsequently found both parties liable for the alleged offenses.

Washington Crypto Roundup: Developments and Litigation

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The former head of legal and compliance for the fraudulent cryptocurrency scheme OneCoin, Konstandina Sakellari, has received a four-year prison sentence after admitting to facilitating the laundering of hundreds of millions of dollars.

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Federal Judge Rejects Custodia Bank's Fed Account Bid

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Coinbase Lawsuit Revived Over Unregistered Securities

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