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| Do Kwon, co-founder of Terraform Labs / Yonhap |
Terraform co-founder to stand trial in Montenegro
By Lee Min-hyung
Terraform Labs co-founder Do Kwon's extradition is likely to take much more time, as Montenegrin prosecutors indicted the now-detained crypto fugitive on charges of passport forgery, according to a local report from Pobjeda, a Montenegrin daily.
The local prosecution also requested an extension to the detention of Kwon and his accomplice surnamed Han ― both of whom were arrested in the Balkan country last month. Kwon, the key figure behind the collapse of the Terra-Luna cryptocurrency ecosystem, has been on the run, since May 2022 when his once-popular cryptocurrencies crashed.
But after he was detained by the authorities in Montenegro, it has remained unclear when he will be sent to either his home country or another, such as the United States or Singapore, where he was accused of crypto fraud. The collapse of the two cryptocurrencies incurred investor losses of more than 50 trillion won ($37.63 billion) across the globe.
It remains to be seen how long Kwon might serve concerning a possible prison term in Montenegro. Those convicted of falsifying personal documents are subject to a prison sentence of up to five years in the country, according to Montenegrin Justice Minister Marko Kovac.
Kwon can be eradicated only after serving his prison term if he is convicted in the local courts. According to reports, those found guilty of document forgery there usually serve around six months in prison and chances are slim that they face the maximum punishment of five years for similar crimes.
But Kwon's legal representative recently expressed the intention to bring the case to the Supreme Court of the country if the first trial's ruling is unsatisfactory. This reduces the possibility of Kwon's near-term extradition to Korea.
Korean investigative authorities are also cooperating with overseas counterparts to freeze Kwon's crypto and financial assets. The prosecution here requested judicial cooperation with Swiss authorities to freeze his assets. Kwon reportedly transferred over 10,000 bitcoins to a Swiss bank account soon after the demise of the Terra-Luna ecosystem.
If Kwon is sent to Korea for further investigation, he will be subject to a prison term of up to 40 years here for violating the Capital Markets Act.
Early this year, the U.S. Securities and Exchange Commission also charged him with crypto fraud and accused him of incurring huge losses for investors in the country. The authority argues Kwon and the company plotted the multi-billion dollar crypto scam even before the collapse of the two cryptocurrencies.
Terraform Labs' other co-founder Daniel Shin also faces an investigation from the Korean authorities. Shin teamed up with Kwon to establish the company in 2018. Shin is also suspected of engaging in crypto fraud and illegal trading acts while selling Luna coins.
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