Terra Labs co-founder Do Kwon has reportedly been taken into extradition custody in Montenegro, according to a report by the regional edition of Radio Free Europe (RFE). Additionally, Kwon faces questioning on his ties to a local political figure.
A spokesperson for the Montenegrin High Court informed RFE that Kwon would be held for up to six months while awaiting the court’s decision on South Korea’s extradition request for him. Kwon’s case has been dubbed “the largest financial fraud or financial securities fraud case that has ever happened in South Korea.” Furthermore, the United States has also requested Kwon’s extradition to face charges by federal prosecutors and the U.S. Securities and Exchange Commission.
On June 16, the Montenegrin Basic Court is set to hold a hearing on the charges against Kwon and former Terraform Labs CFO Han Chong-joon for falsified travel documents. Both individuals were arrested on March 23 at the Podgorica airport in Montenegro while attempting to depart for Dubai.
European Now party leader Milojko Spajić is rumored to have ties to Kwon. Spajić denied these ties, but as alleged connections and potential financial contributions from Kwon continue to be extensively covered by news outlets in Montenegro, this puts additional scrutiny on Kwon as he faces questioning by the special state prosecutor’s office.
Lawyers representing Kwon and Chong-joon initially secured approval for their proposed 400,000-euro ($436,000) bail for each man. However, this decision was later reversed on appeal before the appeal was finally dismissed. Terraform Labs’ Terra ecosystem collapsed in May 2022, leading to losses estimated at up to $40 billion.
Ultimately, the extradition and questioning of Do Kwon has opened a can of worms, intertwining politics and the world of cryptocurrencies. Along with mounting legal pressure, the scrutiny and coverage of Kwon’s alleged connections only intensify the controversies surrounding his case. The outcome will undoubtedly have lasting repercussions for both Kwon and the cryptocurrency community in general.
Source: Cointelegraph
