Montenegro’s Constitutional Court has denied Do Kwon's appeal, potentially leading to his extradition to the U.S. or South Korea for court proceedings related to the Terraform Labs cryptocurrency crash.
Court Decision in Montenegro
Montenegro’s Constitutional Court rejected Do Kwon’s appeal, paving the way for his extradition. The Ministry of Justice in Montenegro will make the final decision on whether he will be sent to the U.S. or South Korea.
Charges and Impact on Crypto Market
Do Kwon faces charges linked to the collapse of the Terraform Labs cryptocurrency system, including TerraUSD and Luna. The market crash in May 2022 resulted in nearly $40 billion losses and initiated the so-called 'crypto winter.' It raised concerns about the stability of stablecoins and decentralized finance.
International Collaboration on Crypto Crimes
Do Kwon was detained in Montenegro in March 2023 for attempting to travel with a fake passport. His case represents significant progress in international efforts to prosecute crypto crimes. This year, Terraform Labs settled with the SEC for $4.47 billion. There are also concerns about his potential political ties in Montenegro.
The rejection of Do Kwon's appeal emphasizes the importance of international cooperation in investigating crypto crimes. This could serve as a model for strengthening measures against financial criminals.
