Do Kwon’s Extradition Blocked by Montenegrin Court
Montenegro Court of Appeal overturns extradition decision Do Kwon To South Korea. Kwon, the cryptocurrency entrepreneur behind Terraform Labs, is facing charges related to the collapse of his company, which led to significant financial losses.
Extradition of Terraform Labs Founder Do Kwon Blocked
For months, both South Korea and the United States requested Kwon’s extradition for his questionable role. Terraform Laboratories scandal. The company’s collapse shook global crypto markets, wiping out nearly $40 billion of investors’ money. The Court of Appeal accepted the objections of Kwon and his defense lawyers and annulled the earlier decision of the Supreme Court of Podgorica. This decision ensures that the case is sent to the first instance court for a retrial and decision.
Kwon had been on the run for months after fleeing South Korea and Singapore ahead of the company’s collapse in 2022. He and an accomplice were arrested in 2022. Montenegro in March last year. Montenegro deported Kwon’s business partner, identified only by his initials JCH, to South Korea in early February.
Terraform Labs marketed terrausd As a stablecoin designed to prevent severe fluctuations by being pegged to stable assets such as the US dollar. Kwon successfully promoted TerraUSD and its sister token Luna as the next big thing in crypto, attracting billions of dollars in investments and global attention. However, both tokens entered a death spiral in May 2022, leading to significant financial losses for investors.
Experts claimed that Kwon set up an extravagant pyramid scheme that caused many investors to lose their life savings. The collapse of Terraform Labs remains one of the most significant financial fiascos in the cryptocurrency world.
Terraform Labs Facing Billions in Fines from SEC
The United States Securities and Exchange Commission (SEC) sought severe penalties against Terraform Labs and Do Kwon following a civil lawsuit ruling. In its application to the New York US District Court on April 19, the SEC requested $4.7 billion in damages and prejudgment interest, as well as a $520 million fine. Terraform suggested a maximum fine of $3.5 million, but Kwon disagreed, arguing for a much lower amount of $800,000.
SEC also recommended disqualification Kwon from being an officer or director of a securities issuer and ensuring full disclosure of its banking accounts and assets. Additionally, the SEC intends to impose a conduct-based injunction against Terraform to prevent this abuse from recurring in the future.
So read: Chinese Woman Sentenced to More than 6 Years in Prison in 61,000 BTC Fraud Case
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Maxwell is a crypto-economic analyst and Blockchain enthusiast who is passionate about helping people understand the potential of decentralized technology. I write extensively on topics like blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its effects on economic freedom and social well-being.
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