Do Kwon, the co-founder of Terraform Labs, expressed surprise at his arrest after months of being on the run for allegedly committing a crypto fraud that shook the entire crypto market and resulted in the loss of at least $40 billion.
During an interview on Tuesday in his office in the capital city of Podgorica, the fugitive reportedly told officials in Montenegro that he had received opulent treatment elsewhere and was accustomed to VIP treatment in other parts of the world.
Kwon’s unlawful entry into Montenegro
Interior Minister Filip Adzic revealed that Kwon and his associate Han Chang-joon were unlawfully present in Montenegro, as they had not registered upon entry anywhere in the country.
The two individuals had reportedly spent some time in a neighboring country prior to that, although the minister did not specify which one.
Adzic confirmed that his ministry had received information suggesting that Kwon and his companion might be present in the country, leading to their eventual arrest.
Kwon had been sought by South Korean authorities since September 2022 when an arrest warrant was issued for him based on allegations of violating capital-markets law.
In March 2023, Kwon was being sought by South Korean authorities in Serbia before he was detained with his CFO, Han Chang-joon, while trying to board a flight to Dubai using travel documents with forged credentials.
The two were detained on March 23 and are currently under routine medical quarantine till April 3 to rule out the possibility of a COVID-19 infection.
The extradition process
According to the South Korean Yonhap news agency, it may take some time before an extradition process begins for Kwon. The prosecutor working on the case against the Terraform Labs co-founder has confirmed that the allegations of counterfeiting are subject to an ongoing investigation, and there have been no indictments yet.
The prosecutor also noted that judicial condemnation of crimes that have taken place in Montenegro’s jurisdiction is a priority for the authorities in the small Balkan nation.
South Korea, the United States, and Singapore are all trying to secure Kwon’s extradition. While the prosecutor declined to discuss the matter in detail as it’s not up to the prosecution to decide on the requests, he emphasized that the fake passport case investigation will be prioritized, and the goal is to indict Kwon within the 30-day detention period.
Kwon Do-Hyung, as he is known in Korea, disappeared after departing for Singapore in April 2022, right before the collapse of two coins, UST and LUNA.
He then fled to Serbia, where he reportedly registered a new firm, before eventually ending up in neighboring Montenegro. Kwon is being investigated for the alleged forging of documents, and the allegations of counterfeiting are subject to an ongoing investigation.
While Kwon awaits his fate in Montenegro, the international community watches with interest to see how the situation unfolds. With the possibility of extradition requests from three countries, Kwon’s alleged fraudulent activities may have far-reaching consequences beyond the Balkan nation.
