Montenegro court extradites Terra founder Do Kwon


Do Kwon, who was the chief executive officer of Terraform Labs—a subsidiary of Terra (LUNA)—may soon face punishment after evading capture for months until being arrested in Montenegro.

The US Securities and Exchange Commission (SEC) had previously accused Kwon and Terraform Labs of a multi-billion dollar crypto scam earlier this year, specifically involving other assets and an algorithmic stablecoin.

The SEC has accused Terra and Kwon of misleading investors by representing cryptocurrencies as securities and has painted the whole Terra ecosystem as a complex scheme involving many conspirators.

Among the many securities-related allegations against Kwon include those of securities fraud, unregistered securities offering, and other offenses. At the same time that he was facing accusations from the SEC, the agency also claimed that he had taken over 10,000 Bitcoin (BTC) out of Terra.

Do Kwon is now faced with the potential of accounting for his crimes that led to a worldwide pursuit. He was captured in March this year while attempting to enter Montenegro with forged papers and was sentenced to four months in prison.

The extradition of Terra inventor Do Kwon to either South Korea or the United States has been accepted by the court in Podgorica, the capital of Montenegro, according to a recent post on the judiciary’s website on November 24.

According to the update, the Montenegrin Justice Minister will have the last say in the matter of extradition after a four-month jail term for document falsification.

Recently, Kwon and his accomplice Han Chang-Joon’s four-month jail term for document creation was upheld by the Montenegro High Court. The court found the penalty appropriate and rejected their appeal.

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