The High Court of Montenegro has given the green light to the extradition process for the co-founder of Terraform Labs: the latest details.
Following accusations of market manipulation and fraud, Do Kwon, co-founder of Terraform Labs, will face an extradition process to the United States. According to the local newspaper Pobjeda, on February 21st, the High Court of Podgorica rejected the extradition request to South Korea in favor of the USA.
Kwon is currently detained in Montenegro, after being arrested at Podgorica Airport for possession of fake travel documents. This led to a four-month imprisonment, later extended by an additional two months.
The timing for his extradition is not yet clear and could take several weeks or months to be finalized. Once in the United States, Do Kwon will face a legal process initiated by the Securities and Exchange Commission against him.
The charges
Do Kwon is facing eight charges brought by federal prosecutors in the Southern District of New York, including ‘wire fraud, commodity fraud, securities fraud, and conspiracy to commit fraud and market manipulation.’ In the event of a conviction, Do Kwon could face up to 10 years in prison.
Additionally, Kwon is accused by South Korean authorities of various financial crimes, including ‘capital market fraud, issuance of unapproved financial investment contracts, and embezzlement.’ The charge of ‘capital market fraud’ in particular, could carry a maximum prison sentence of 40 years.
