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Do Kwon to face extradition to South Korea over $40 billion venture collapse

Do Kwon

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TL;DR

  • Do Kwon, the founder of Terraform Labs, and the collapsed Terra Luna crypto project, is facing extradition from Montenegro to South Korea.
  • The prosecutors handling the case recommend Kwon’s extradition to South Korea, where he could face a prison term exceeding 40 years.
  • Kwon had been evading capture since the collapse of Terra Luna last year but was apprehended in March in Montenegro.

According to reports, the prosecutors handling the case of Do Kwon, the founder of the now-defunct Terraform Labs, have announced that they recommend Kwon’s extradition to his home country of South Korea.

Montenegro’s authorities are detaining Kwon over accusations of traveling with a counterfeit passport. Kwon’s crypto empire had collapsed, and both the U.S. and South Korea are seeking his extradition to face charges related to the downfall of his massive $40 billion venture.

During an interview, Director Dan Sung-han of Seoul Southern District’s joint financial crimes team expressed his viewpoint regarding the Terra Luna project. He emphasized that most evidence primarily implicates accomplices from South Korea, Kwon’s home country. Director Sung-han’s statement suggests that many individuals involved in the project are from South Korea and are linked to Kwon.

In addition, Director Dan Sung-han stated that if the crypto fugitive is found guilty in South Korea, he could receive a prison term exceeding 40 years. This would mark the longest sentence in the history of South Korea. Furthermore, it would be the most extended imprisonment ever imposed for financial crimes within the country.

However, Kwon firmly denies the allegations against him, stating that while mistakes were made in the Terra-Luna crypto project under his Terraform Labs, it was never intended to deceive investors. According to Kwon, the errors were unintentional, and the project’s primary objective was not to mislead or defraud anyone.

Since the collapse of Terra Luna last year and the subsequent issuance of an arrest warrant, Kwon had been evading capture. However, on March 23, he was apprehended in Montenegro and taken into custody. Kwon’s arrest marks a significant development in the ongoing investigation surrounding the collapse of Terra Luna, bringing him to face the legal consequences of his alleged involvement.

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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Mutuma Maxwell

Maxwell especially enjoys penning pieces about blockchain and cryptocurrency. He started his venture into blogging in 2020, later focusing on the world of cryptocurrencies. His life's work is to introduce the concept of decentralization to people worldwide.

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