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In a significant development in the Terra blockchain saga, Terraform Labs founder Do Kwon may soon face trial in the United States. This follows the collapse of the multi-billion dollar Terra ecosystem involving cryptocurrencies LUNA and UST.
Do Kwon Extradition Decision Nears Completion
Do Kwon, the once-celebrated founder of Terraform Labs, has become the center of an international legal dispute. South Korea and the United States have both shown interest in prosecuting Kwon.
This follows the dramatic collapse of the Terra ecosystem, which had extensive user bases in both countries. Montenegro’s Justice Minister, Andrej Milovic, is poised to decide on the extradition. The Wall Street Journal reports that Milovic has informed U.S. officials of his inclination towards surrendering Kwon to American authorities.
SEC Seeks Summary Judgment Against Kwon
Do Kwon face serious allegations in both jurisdictions. In South Korea, he is accused of violating the Capital Markets Acts, with potential penalties reaching up to 40 years in prison. Meanwhile, the U.S. Securities and Exchange Commission (SEC) has pursued legal action against the crypto mogul for allegedly offering unregistered securities and using deceptive marketing strategies. These charges center around TerraUSD, an algorithmic stablecoin, and its subsequent collapse.
Kwon’s legal team has sought to dismiss the SEC’s case. However, SEC prosecutors are pushing for a summary judgment. This legal battle has gained international attention, underscoring the complexities and risks associated with the rapidly evolving world of cryptocurrency.
The saga took a turn when Kwon was detained in Montenegro in March 2023 using a forged Costa Rican passport. His arrest and potential extradition to the U.S. are pivotal in the case. Despite Kwon’s attempts to appeal a court ruling approving his transfer out of Montenegro, prior appeals to revoke his four-month prison sentence were denied, as reported by Coingape.
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