Cryptocurrency firm Terraform Labs and its founder Do Kwon committed fraud
The US Securities and Exchange Commission (SEC) ruled that the actions of cryptocurrency company Terraform Labs and its founder Do Kwon constitute fraud. The company's bankruptcy in 2022 resulted in a loss of $40 billion in investor funds.
Do Kwon will go on trial in Manhattan on Monday
Terraform Labs and its founder Do Kwon will face trial in Manhattan on Monday, accused by regulators of lying to investors about the collapse of the company's two cryptocurrencies, LUNA and UST, which disrupted the market in 2022. Regulators also accuse them of falsely claiming that Terraform's blockchain was used for a popular mobile payment app in Korea. Do Kwon will not attend the trial. He was arrested in Montenegro last March and is awaiting extradition back to his home country of South Korea, where he faces criminal charges. A court in Montenegro postponed his extradition on Friday, citing concerns from the country's prosecutor's office about the extradition process.
Do Kwon will be released from Montenegro prison but will not be allowed to leave the country
Do Kwon, co-founder of Terraform, will be released from prison in Montenegro, but due to several criminal charges brought by national authorities, he will remain in the Balkans. The High Court of Montenegro ordered the confiscation of Kwon's passport on Friday to prevent him from leaving the country. According to the court's order, Kwon will leave Spuž prison on Saturday. The prosecutor opposes extraditing Kwon to South Korea and would prefer him to be sent to the United States, where he could face a longer sentence if convicted.
Terra co-founder Do Kwon released, awaiting Supreme Court extradition decision
Market news: Terra co-founder Do Kwon has been released and is awaiting the extradition decision of the Supreme Court.
Market News: DO KWON may be extradited to South Korea
According to market news, DO KWON may be extradited to South Korea.
South Korea Prepares for Extradition of Terra Co-Founder Do Kwon
South Korea is now preparing for the extradition of Terra co-founder Do Kwon from Montenegro, after he won an appeal against extradition to the United States. The National Police Agency is working with Interpol to coordinate the extradition to South Korea. The Ministry of Justice’s International Criminal Division and the National Police Agency are collaborating to repatriate Kwon through the International Criminal Cooperation Channel and Interpol’s International Cooperation Line. Kwon's token, LUNA, is not considered a security in South Korea, but a judge in the US SEC vs Terraform Labs and Do Kwon lawsuit ruled that it is a security, which has implications for the severity of punishment and imprisonment terms.
Do Kwon wins appeal against extradition to US
In a statement released on Tuesday, imprisoned Terra co-founder Do Kwon achieved a rare victory as the Montenegrin court overturned a lower court's decision to extradite him to the United States. The Balkan country's appellate court pointed out in the legal action that led to the extradition decision in February that "serious violations of the criminal procedure rules" had occurred. Last month, Kwon appealed the ruling that would have sent him to the United States to face fraud charges related to Terra's $60 billion loss in May 2022.
Montenegro Court of Appeal has quashed decision on Do Kwon’s extradition request
The Montenegrin Court of Appeal made a ruling after a joint trial, accepting the appeal of the defendant Do Kwon's defense lawyer, revoking the ruling of the High Court in this case, and sending the case back to the first-instance court for retrial and judgment. When making a ruling on the appeal of the defendant's defense lawyer, the joint trial of the Court of Appeal assessed that the decision seriously violated the provisions of Article 386, Paragraph 1, Items 8 and 9 of the Criminal Procedure Law, because the wording of the decision was difficult to understand, the decision did not have decisive factual basis, and the reasons given were unclear, which is the reason for the decision to be cancelled.
Do Kwon's U.S. trial postponed to end of March
Do Hung Kwon, the former CEO of Terraform Labs, has been accused of fraud by the US SEC due to the collapse of the algorithmic stablecoin Terra USD. The trial was originally scheduled for January 29th, but due to uncertainty surrounding extradition, the trial date has been postponed to the end of March this year.
SEC Delays Do Kwon and Terraform Trial Until US Extradition in March
The trial of Terraform Labs founder Do Kwon has been postponed until his extradition to the US, which is expected in March. The United States Securities and Exchange Commission (SEC) agreed to the delay, which was requested by Kwon's lawyers due to slow extradition proceedings in Montenegro. The SEC is against separating the case against Kwon from the case against Terraform, as both entities are defendants in the charges brought by the SEC. The charges accuse Kwon and Terraform Labs of orchestrating a multi-billion dollar crypto asset securities fraud.
