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Terraform Labs’ Do Kwon to be released from Montenegro prison, remains under legal scrutiny

Do Kwon

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TL;DR

  • Do Kwon to be released from Montenegro prison; passport confiscated to prevent leaving.
  • Montenegrin prosecutors prefer his extradition to the US over South Korea for potentially harsher penalties.
  • Kwon arrested in Montenegro for fake documents after his crypto firm’s collapse erased $40 billion.

Do Kwon, the co-founder of Terraform Labs, is set for release from Spuž prison in Montenegro, with strict conditions preventing his departure from the country. Following a court order, Kwon’s passport was confiscated, a measure aimed at ensuring he stayed within Montenegrin jurisdiction. This development is part of the ongoing legal proceedings against Kwon, who faces charges in multiple countries related to his role in the cryptocurrency market.

Montenegro’s High Court made the decision to release Kwon but restrict his movement, citing the need to keep him accessible for legal actions. Kwon’s legal troubles stem from the 2022 collapse of Terraform Labs’ digital currencies, Terra and Luna, which resulted in over $40 billion in market value disappearing almost overnight. This financial debacle has led to investigations by both South Korean and U.S. authorities, who accuse Kwon of fraud and securities law violations.

Prosecutors in Montenegro have shown a preference for Kwon to be extradited to the United States, where he could face more severe penalties if convicted. This position highlights the international efforts to hold Kwon accountable for the significant financial losses incurred by investors.

Kwon’s arrest in Montenegro came about due to the use of counterfeit travel documents, an offense that led to his detainment and the subsequent legal actions. His case continues to unfold, with implications for regulatory oversight and legal accountability in the cryptocurrency sector.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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