BELGRADE: Montenegro stated on Friday (Dec 27) it should extradite to the US cryptocurrency specialist Do Kwon, who can be wished by Seoul for the multi-billion-dollar chapter of his firm, Terraform Labs.
His attorneys denounced the choice as opposite to European conventions on extradition, and stated they may enchantment to the nation’s constitutional court docket and to the European Courtroom of Human Rights.
For months, Seoul and Washington have been in search of the South Korean’s extradition for his suspected position in a fraud linked to his firm’s failure, which worn out about US$40 billion of buyers’ cash and shook world crypto markets.
Montenegrin Justice Minister Bojan Bozovic “issued a call approving the extradition of the accused, Kwon Do Hyung, to the US of America,” the justice ministry stated, referring to him by his full identify.
The choice adopted a 12 months and a half of court docket rulings and subsequent reversals relating to his extradition.
“It was concluded that almost all of the factors prescribed by regulation favour the extradition request” from the US, the ministry added in a press release.
Crypto tycoon Do Kwon was arrested in March 2023 on the airport in Podgorica, the Montenegrin capital, whereas making ready to board a flight to Dubai, and a pretend Costa Rican passport was present in his possession.
Earlier than his arrest, he had been on the run for months, fleeing South Korea and later Singapore, earlier than his firm went bankrupt in 2022.
“STABLECOIN” COLLAPSE
After a sequence of rulings by the Montenegrin courts, approving after which cancelling extradition requests, the nation’s constitutional court docket lifted the ultimate hurdle on Tuesday.
It stated in a ruling that earlier proceedings “ensured the appellant’s proper to a good trial and didn’t increase issues a couple of doable violation of the appropriate to household life”.
The court docket additionally stated that Do Kwon, in the course of the listening to, “personally consented to expedited extradition to each the Republic of South Korea and the US”.
Do Kwon’s Montenegrin attorneys, Marija Radulovic and Goran Rodic, stated they’ve requested each the nation’s constitutional court docket and the European Courtroom of Human Rights to difficulty stays towards the extradition.
The attorneys additionally stated the justice ministry had initially delayed delivering the precise determination to them in an try to stop the appeals.
Montenegro had already deported Do Kwon’s enterprise associate – recognized solely by his initials J.C.H. – to South Korea in early February.
Terraform Labs created a cryptocurrency referred to as TerraUSD that was marketed as a “stablecoin”, a token that’s pegged to secure belongings such because the US greenback to stop drastic fluctuations.
Do Kwon efficiently marketed them as the following massive factor in crypto, attracting billions in investments and world hype.
Media studies in South Korea described him as a “genius”.
However regardless of billions in investments, TerraUSD and its sister token Luna went right into a loss of life spiral in Could 2022.
Consultants stated Do Kwon had arrange a glorified Ponzi scheme, by which many buyers misplaced their life financial savings.
He left South Korea earlier than the crash and spent months on the run.
In January, Terraform Labs formally sought bankruptcy protection within the US.
The bankruptcy filing would enable Terraform “to execute on its marketing strategy whereas navigating ongoing authorized proceedings, together with consultant litigation pending in Singapore and US litigation involving the Securities and Change Fee”, the corporate stated in a press release.
It stated it additionally meant to “meet all monetary obligations to staff and distributors”.
Cryptocurrencies have come below rising scrutiny from regulators after a string of controversies in recent times, together with the high-profile collapse of the exchange FTX.
