Do Kwon, co-founder of Terraform Labs, has been released from a Montenegro prison pending extradition petitions from the US and South Korea. These areas intend to pursue Kwon for alleged fraud in connection with the Terra ecosystem's $40 billion crash in May 2022. After months of deception, Kwon was detained while attempting to utilize fraudulent Costa Rican travel documents.
Kwon was first sentenced to four months in prison and has remained in imprisonment until recently. Kwon, who currently lives in a foreign shelter and does not have a passport, hopes to remain free while the court determines whether or not to extradite him.
His lawyers contested the extraditions, and a return to South Korea appeared likely. However, Montenegro's chief prosecutor intervened. As a result, the Supreme Court must now consider the rival extradition requests, leaving Kwon's fate uncertain. In the meantime, judicial proceedings continue.
The US Securities and Exchange Commission (SEC) has launched a civil fraud investigation. Kwon and Terraform Labs are accused of misleading investors about Terra's stability and fraud over a Korean mobile payment service that uses the Terra network. Kwon faces criminal charges in both New York and South Korea.
