Montenegro’s Appellate Court has affirmed the extradition of Do Kwon

Montenegro’s Appellate Court has affirmed the extradition of Do Kwon, co-founder of Terraform Labs, to South Korea, bringing a close to a contentious legal saga that has spanned several months. Initially, the decision of whether to extradite Kwon to South Korea or the United States was hotly debated in Montenegrin courts. However, the recent ruling has solidified his repatriation to South Korea, with no further motions to appeal the decision, thereby expediting the process.

Terraform Labs and Kwon’s Legal Struggles in the United States

Earlier this year, in April, the US Securities and Exchange Commission (SEC) secured a significant legal victory against Terraform Labs and Do Kwon. A US court ruled them liable for fraud, finding them guilty of six charges, including the intentional misleading of investors and reckless mishandling of customer funds. This landmark ruling set the stage for subsequent legal and financial repercussions for both Kwon and his company.

In June, just a few months after the court’s decision, Terraform Labs reached a substantial settlement with the SEC. The agreement included a staggering $4.47 billion in fines and penalties. Specifically, the settlement encompassed disgorgement fines amounting to approximately $3.6 billion, a civil penalty of $420 million, and interest payments on the fines totaling $467 million. Additionally, Kwon faced around $204 million in legal fines as part of this settlement. Judge Rakoff approved the settlement on June 13, marking a significant moment in the legal battle.

Following the settlement, Terraform Labs announced its plans to cease operations by June 12, 2024. The company also stated that it would transfer control of the Terra ecosystem to the broader community, effectively ending its direct involvement in the project.

Connections to Montenegrin Prime Minister

In the aftermath of the legal settlement with the SEC, Montenegrin media outlet Vijesti reported a potentially controversial connection between Terraform Labs and Milojko Spajic, the current Prime Minister of Montenegro. According to the report, Spajic was an early investor in Terraform Labs, investing $75,000 in 2018 and receiving 750,000 LUNA tokens in return. This investment reportedly occurred just days before Terraform Labs was officially registered as a business entity in Singapore.

However, Spajic has vehemently denied these allegations, clarifying that the investment was made by Das Capital SG, a company he was associated with for three years before assuming office. Despite his denials, the claims have added another layer of complexity to the already intricate legal and financial narrative surrounding Terraform Labs and its co-founder.

Closing Thoughts

The decision by Montenegro’s Appellate Court to extradite Do Kwon to South Korea marks a pivotal moment in a long-running legal battle. With no further appeals on the horizon, Kwon’s return to South Korea appears imminent. Meanwhile, the financial and legal repercussions of Terraform Labs’ actions continue to unfold, leaving a lasting impact on the cryptocurrency industry.