Former Terraform Labs CEO Do Kwon could quickly be extradited to the US or South Korea following a ruling from the Montenegrin Excessive Court docket. Kwon has agreed to be deported to South Korea, however the remaining choice lies with Justice Minister Andrej Milovic.
Whereas it’s unclear the place Do Kwon will face prices after serving jail time for forgery in Montenegro, the minister hinted that the area intends to signal an extradition settlement with the US, its chief international coverage companion. Kwon can also be wished in South Korea for violation of capital markets regulation.
Kwon Prefers South Korea to US
Kwon’s legal professionals have beforehand contested the legitimacy of allegations leveled by US authorities. They added lately that Kwon was willing to be extradited to South Korea.
Kwon appeared to have vanished after the collapse of stablecoin TerraUSD (UST) and its sister coin Luna (LUNA) in Could final 12 months. UST was a stablecoin that maintained a price of 1 US greenback by means of software program controlling the minting and burning of LUNA.
Learn extra: What Is a Stablecoin? A Newbie’s Information
The algorithm failed after a collection of enormous UST withdrawals from a stablecoin pool. The minting and burning mechanism had no circuit breaker and finally tanked the worth of each cash to close zero. Korean authorities argue the software program by no means labored in any respect as a result of the algorithm was too troublesome to get proper.
The authorities later requested that Interpol subject a Pink Discover to apprehend Kwon in September final 12 months. He was later caught with faux passports at an airport in Montenegro and arrested. He’ll serve out his four-month sentence there earlier than his extradition.
Crypto CEOs in Entrance of Firing Squad
If convicted, Kwon would grow to be the third crypto CEO discovered responsible of economic crimes for the reason that Terra collapse. This week, former Binance CEO Changpeng Zhao pleaded responsible to being concerned in violating cash laundering and sanctions legal guidelines. His plea deal may see him resist 18 months in jail.
On Nov. 2, a jury discovered former FTX CEO Sam Bankman-Fried responsible of cash laundering and fraud. He faces as much as 110 years in jail, though a choose may supply him leniency. His sentencing trial is in March.
Learn extra: FTX Collapse Defined: How Sam Bankman-Fried’s Empire Fell
The spate of unlawful crypto exercise has seen areas like Hong Kong and South Korea develop legal guidelines to guard buyers. Singapore, the place Kwon was dwelling earlier than TerraUSD collapsed, has additionally made notable strides towards laws that shield retail crypto shoppers.
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