Terra co-founder Do Kwon found himself in the middle of a complicated legal battle. The recent decision of the Supreme Court of Montenegro adds a new dimension to the story, raising questions about his ultimate fate.
Returns are on hold
On April 5, 2024, the Supreme Court of Montenegro overturned previous decisions regarding the extradition of Do Kwon. Citing procedural errors by the lower courts, the decision forces a comprehensive reconsideration of the case by the Supreme Court of Podgorica. The move deals a blow to the extradition process, which has left Kwon facing requests from both the United States and South Korea.
The heart of the problem lies in competing demands for extradition. Initially, Montenegrin officials were inclined to grant the US request due to it being done sooner. However, the appeals court reversed the script, supporting South Korea’s claim due to the chronology of the requests. Now the Supreme Court says both requests must be evaluated independently. It also emphasizes the need to ensure a fair and legal process.
New York jury decides for Terra inventor
In the continuation of the confusion, a recent US court decision came to the fore. cryptokoin.com As we reported, a lawsuit filed by the U.S. Securities and Exchange Commission (SEC) found Terraform Labs and Do Kwon liable for fraud. The jury concluded that the company misled investors and caused billions of dollars in losses during the TerraUSD crash in 2022. This decision means legal liability for Kwon and Terraform Labs, apart from the ongoing extradition cases.
The Supreme Court’s decision ultimately gives the Montenegrin Minister of Justice the authority to call for final extradition. This decision will be based on a comprehensive review of the legal bases presented by both the United States and South Korea. The U.S. decision could affect the trial but does not automatically guarantee Kwon’s extradition there.
Terraform Labs denied the accusations: Objection expected
Terraform Labs, on the other hand, maintains its innocence by vehemently denying the SEC’s accusations and vowing to appeal the decision. They argue that the SEC lacks the legal authority to pursue the case and maintain its stance that the TerraUSD crash was a market-driven event beyond their control.
The Do Kwon incident highlights the growing difficulties of regulating cryptocurrency across borders. The case sets a precedent for how various countries approach extradition requests for crypto-related crimes. Additionally, the SEC’s successful lawsuit against Terraform Labs points to a stricter regulatory environment for crypto companies in the US. Do Kwon’s future remains uncertain. It may take considerable time for the Montenegrin court to reconsider extradition requests. Meanwhile, the US decision adds financial pressure to the situation.
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