Will the US and South Korea cooperate in the trial when Do Kwon is extradited back to South Korea as soon as this weekend?
According to Bloomberg, Do Kwon, the founder of Terraform Labs, will be extradited back to South Korea this weekend. However, the South Korean government may still reach an agreement with the United States to have him tried in New York first.
Do Kwon was initially sentenced to four months in prison in Montenegro for using a fake passport. After serving his sentence, both the United States and South Korea requested his extradition. However, according to the latest statement from the court cited by Bloomberg, the favorable ruling made by the Supreme Court in favor of South Korea is considered correct because South Korea was the first to make a request for Do Kwon’s extradition, among other reasons.
For Do Kwon and his defense team, this is a victory, as they prefer to be extradited to South Korea, where the punishment for white-collar crimes is lower than in the United States. Do Kwon was arrested in Montenegro in March 2023 for traveling with a fake passport. Han Chang-jun, the former CFO of Terraform Labs, has also been transferred to South Korea for trial. He is accused of creating a false impression of Terra’s normal operations and profiting more than 53.6 billion Korean won (approximately $40.26 million) from the sale of LUNA tokens.
Goran Rodic, Do Kwon’s lawyer in Montenegro, stated that this is the final decision and there will be no further appeals. He expressed satisfaction with the court’s ruling, which demonstrates its respect for the rule of law. He also pointed out that the next step is the actual extradition, which requires coordination between the judicial departments and respective police officers of South Korea and Montenegro.
The U.S. Securities and Exchange Commission (SEC) civil lawsuit against Do Kwon and Terraform Labs is scheduled to take place on March 25. They are accused of orchestrating a securities fraud involving billions of dollars in cryptocurrencies, including TerraUSD (UST) and Terra.
Do Kwon will also face criminal charges. Damian Williams, the U.S. prosecutor, previously filed eight charges against him, including commodity fraud, securities fraud, wire fraud, and conspiracy to commit fraud and market manipulation.
Even if Do Kwon is extradited to South Korea, the South Korean government may still reach an agreement with the United States to have him tried in New York first. The U.S. might claim that it has a stronger ability to recover Do Kwon’s assets worldwide and agree to share these assets with South Korea.
Do Kwon and Terraform Labs
Further reading:
Do Kwon confirms extradition to the United States, facing multiple charges from the SEC and prosecutors
Terraform Labs seeks bankruptcy protection, causing a decline in tokens like LUNA.
