- Montenegro approved Do Kwon’s extradition to the U.S., rejecting South Korea’s competing request.
- The decision stems from his alleged role in a $40 billion cryptocurrency collapse.
- Kwon’s extradition highlights increased global scrutiny of crypto-related financial crimes.
Montenegro’s Minister of Justice Bojan Božović signed the decision on the extradition of the South Korean citizen Kwon Do Hyeong, known as Do Kwon, to the United States. The development comes after prolonged legal wrangles between the Australian government that is still thinking whether to extradite the activist to either the United State or South Korea.
Statement has an epigenetic significance to the global inquiry into one of the most monumental failures in the history of crypto.
Supreme Court Ruling Paves the Way
The Supreme Court of Montenegro recently concluded that both requests contained necessary legal requirements for extradition. The Ministry of Justice also considered other factors where the alleged crimes were committed, the order in which the requests were made and the severity of the crimes alleged.
Nonetheless, following thorough analysis, the ministry argued most of the conditions benefited the US request. The Ministry explained the decision to Montenegro law and international legal obligations of the state.
The Fallout of a Crypto Collapse
Do Kwon, creator of the stablecoin TerraUSD and its associated token Luna is currently under investigation over the collapse of what was a $40 billion stablecoin market in May 2022. During that period, the tumble in the value of these cryptocurrencies propelled a string of digital asset firms and companies into insolvency and caused untold emulator investors to lose all their worth.
Another factor which has further aggravated the situation is that the authorities of both the United States and the Republic of Korea accused Kwon of misrepresenting facts to investors and hiding property.
Legal Proceedings in Montenegro
Kwon and his associate, Han Cheng Jun, were arrested in March 2023 at Podgorica Airport where he tried to travel to Dubai with fake passports. After they were arrested, Kwon was given a four-month prison sentence for having fabricated documents. In this period both the U.S administration and that of South Korea had made extradition requests.
All this was said following the signed decision and thus Kwon is expected to be extradited to the American authorities. The move confirms the increasing collaboration between countries involved in combating financial offenses in the cryptocurrency industry.