Beleaguered cryptocurrency entrepreneur Do Kwon secured another victory this week in his battle towards extradition, as a Montenegrin appeals court docket halted the method demanding additional overview of the case.
- Do Kwon gained a second enchantment towards a Montenegrin court docket order approving his extradition to the U.S. and South Korea to face prison expenses.
- The appellate court docket annulled the earlier ruling upholding extradition on account of “vital violations” and an “unclear” choice missing examination of case specifics.
- This represents a victory for Kwon after initially successful an enchantment in November 2022 solely to have it later overturned in December.
- Kwon faces expenses referring to the collapse of the TerraUSD stablecoin and broader Terra ecosystem final Could, which authorities allege was a multi-billion greenback fraud.
- Kwon’s former Terraform Labs CFO was extradited to South Korea earlier this week, however Kwon has to this point averted the same destiny as his case faces continued scrutiny.
Kwon faces prison expenses in each South Korea and the United States referring to the catastrophic collapse in Could 2022 of the TerraUSD algorithmic stablecoin and its supporting Luna token. The debacle worn out an estimated $60 billion in investor funds.
Prosecutors allege Kwon perpetrated fraud by concealing the weaknesses in TerraUSD’s design that made the coin prone to break down at scale. Kwon denies these accusations. He was visiting Montenegro when arrest warrants had been issued and was subsequently detained for touring with falsified paperwork.
A Montenegrin decrease court docket initially authorised Kwon’s extradition, however he gained an enchantment in November 2022 citing inadequate foundation. The nation’s excessive court docket then overturned that ruling in December, signing off on the U.S. and South Korean extradition requests.
Kwon challenged the choice once more, together with his legal professionals arguing the court docket confronted political strain and didn’t sufficiently examine the specifics of the case. This week’s appellate court docket ruling sided with Kwon, annulling the earlier extradition approval on account of “vital violations” within the authorized course of.
The court docket known as the excessive court docket’s choice “incomprehensible,” missing readability and justification whereas offering unsatisfactory reasoning. It despatched the case again to decrease courts for a retrial and recent ruling.
The see-sawing authorized judgement permits Kwon, at present serving a four-month sentence in Montenegro for touring with false documentation, to remain put for now. Nevertheless it doesn’t finish the extradition menace.
In distinction, former Terraform Labs CFO Han Chang-Joon failed in his personal court docket appeals and was extradited earlier this week to South Korea, the place he’ll stand trial across the Terra ecosystem collapse.
Whereas Do Kwon succeeded in shopping for extra time on his destiny for now, prosecutors stay decided to haul within the man they see as accountable for masterminding one historical past’s largest crypto fraud schemes and making an instance out of him.