U.S. Prosecutors to Appeal Decision on Extradition of Former Terraform Labs CEO

U.S. prosecutors are set to appeal a recent decision by a Montenegrin high court regarding the extradition of Do Kwon, the former CEO of Terraform Labs, to South Korea.

The legal battle involving multiple jurisdictions, including South Korea and the U.S., has seen extradition requests filed for Kwon by both countries.

According to a report by Bloomberg, the U.S. Department of Justice (DOJ) is pursuing Kwon’s extradition in accordance with relevant international agreements and Montenegrin law. The DOJ has commended Montenegrin authorities for upholding the rule of law.

The High Court in Podgorica initially ruled in favor of sending Kwon to the U.S. on Feb. 21. However, this decision was overturned by the Montenegro Appeals Court due to procedural violations, potentially leading to Kwon’s extradition to South Korea.

Kwon faces charges related to fraud and market manipulation in connection with the $40 billion collapse of the Terra ecosystem. South Korea has also leveled charges against him, including fraud and violations of capital markets law.

Kwon’s legal team has expressed a preference for his extradition to South Korea, citing proximity to family and a potentially shorter prison sentence.

In a related case, Sam Bankman-Fried, co-founder of FTX, is facing legal issues in the U.S. following a fraud conviction in New York. The Manhattan U.S. attorney’s office, which is handling charges against Kwon, also prosecuted Bankman-Fried.

Kwon was apprehended in March 2023 for traveling with a counterfeit passport and has since been in custody awaiting extradition.

The Terra Classic community is actively working on initiatives to recover from the TerraUSD collapse in May 2022. Measures include token burning to reduce supply and discussions on rebranding to restore investor confidence.

Efforts are also underway to integrate with new projects and decentralized applications to enhance utility and adoption within the web3 ecosystem.

Despite these efforts, the fallout from the TerraUSD crash continues to present regulatory challenges for LUNC, impacting its credibility in the financial market.

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