After his March arrest in Montenegro, Kwon received a four-month jail term.
Justice Minister of Montenegro intends to approve the request for extradition made by U.S.
The co-founder of Terraform Labs, Do Kwon, is allegedly set to be deported to the US instead of South Korea in order to face criminal accusations.
A report from the WSJ citing sources close to the situation states that Justice Minister Andrej Milović of Montenegro intends to approve the request for extradition made by U.S. authorities, as reported on December 7th.
After his March arrest in Montenegro, Kwon received a four-month jail term for using false travel papers. His alleged involvement in the demise of Terraform Labs has led to charges in both the United States and South Korea.
Extradition Ruling Appealed
“In a timely manner,” according to Milović, the news will be made public. If extradited to the United States, Kwon will face eight counts pertaining to his tenure at Terra, including commodities fraud, securities fraud, wire fraud, conspiracy to deceive, and market manipulation.
A further accusation of “defrauding investors in crypto schemes” was brought against Kwon in February by the United States SEC. One of the key events that started a cryptocurrency market slump in May 2022 was the failure of Terraform Labs. Numerous crypto companies went bankrupt when TerraUSD (UST) decoupled from the United States dollar.
Everyone was wondering where Kwon was before his detention in Montenegro, with many thinking he was in Singapore. Kwon may still face charges in South Korea, even though he is expected to face U.S authorities first, according to some legal experts. He contends that he did not commit fraud. Moreover, he has appealed against the extradition and a ruling will be given out by the Montenegro Court of Appeals.