The United States and South Korea both aim to prosecute Terra founder Do Kwon, making his next destination uncertain, according to a Bloomberg report on March 29.
Kwon faces charges in multiple countries
Currently, Kwon is detained in Montenegro. Ongoing legal proceedings in the country now determine where Kwon will go to stand trial.
Montenegrin Justice Minister Marko Kovac said the severity of Kwon’s crimes, the location of his offenses and the order of the demands will determine Kwon’s next destination.
Kwon’s citizenship will also come into play, according to Kovac. Although he did not elaborate, Kwon is a South Korean citizen and would not have dual American citizenship. This is probably a point in favor of extradition to South Korea.
In the United States and South Korea, Kwon faces various fraud charges related to the failure of his cryptocurrency and stablecoin company Terraform Labs.
Bloomberg noted that the United States and South Korea do not have extradition agreements with Montenegro, but do have other international agreements. The two nations could also come to an agreement and Kwon himself could challenge the extradition.
Furthermore, Kwon was first arrested in Montenegro, where he was accused of traveling with false documents. As such, he may have to serve time in Montenegro for these charges before facing either country’s court systems.
Terra’s Collapse Happened Almost A Year Ago
Terra originally collapsed in May 2022, and these latest proceedings are only part of the investigation into the project and its founders.
Both the US Department of Justice (DOJ) and the US Securities and Exchange Commission (SEC) are investigating Terra’s collapse. Singapore is also investigating the matter. Terra co-founder Daniel Shin is also wanted by authorities.
Terra’s UST stablecoin has long since lost its dollar peg and is now valued at $0.02. Terra Luna Classic (LUC) has also lost almost all of its value since May 2022 but still maintains a market capitalization of $733 million, making it the 67th largest cryptocurrency.