Digital

Former Terraform Labs CEO Faces Extradition as Decision Pending Between US and South Korea

The former CEO of Terraform Labs, Do Kwon, may soon face extradition to either the United States or South Korea following a ruling by the Montenegrin High Court. Kwon, who is currently serving a four-month prison sentence in Montenegro for forgery, has agreed to be deported to South Korea. However, the final decision rests with Montenegro’s Justice Minister, Andrej Milovic.

While the specific charges Kwon will face after serving his prison term in Montenegro remain unclear, the minister hinted at the region’s intention to sign an extradition agreement with the US, its chief foreign policy partner. Kwon is also wanted in South Korea for alleged violations of capital markets law.

Kwon’s legal team has previously challenged the legitimacy of the allegations made by US authorities. Recently, they stated that Kwon is willing to be extradited to South Korea.

Kwon had seemingly disappeared after the collapse of the stablecoin TerraUSD (UST) and its companion coin Luna (LUNA) in May of the previous year. The collapse was attributed to a failed algorithm controlling the minting and burning of LUNA, leading to a significant drop in the value of both coins.

The former Terraform Labs CEO was apprehended in Montenegro with fake passports and arrested following a request from Korean authorities issued through Interpol. Kwon will complete his four-month sentence in Montenegro before facing extradition.

If convicted, Kwon would be the third crypto CEO found guilty of financial crimes, joining the recent cases of former Binance CEO Changpeng Zhao and former FTX CEO Sam Bankman-Fried. The crypto industry is facing increased scrutiny and regulatory measures globally, with authorities aiming to protect investors and ensure the integrity of the financial system.

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