Do Kwon Extended Detention in Montenegro
Terraform Labs co-founder Do Kwon, expected to be extradited to the United States on criminal charges, will reportedly remain in Montenegrin custody until February.
Authorities from the U.S. and South Korea have requested an additional two months of detention for Kwon after the completion of his initial four-month prison sentence.
The Terraform Labs co-founder was arrested in Montenegro in March for using falsified travel documents.
Kwon, a South Korean national formerly based in Singapore, has been charged in both the U.S. and South Korea for his alleged role in the collapse of Terra.
According to a Bloomberg report on 12 December, the U.S. is set to take custody of Kwon before South Korea.
Both countries have extradition requests pending at the time of publication.
Marija Rakovic, the spokesperson for the High Court of Montenegro, revealed that Kwon’s dentention has been extended to 15 February:
“Extradition custody of Do Kwon is expanded by two months,”
Do Kwon Criminal Charges in U.S.
In the event of extradition to the United States, Kwon would face eight criminal charges, including commodities fraud, securities fraud, wire fraud, and conspiracy to defraud and engage in market manipulation related to his time at Terraform Labs.
Impact of Terra’s Collapse
The collapse of Terra in May 2022 marked a turning point in the cryptocurrency landscape, triggering a domino effect with far-reaching consequences.
Terra, a blockchain protocol designed for stablecoins, experienced a sudden and dramatic downturn.
This event resulted in the depegging of TerraUSD (UST) from the U.S. dollar, causing widespread repercussions throughout the crypto market.
Notably, the aftermath of Terra’s collapse reverberated across various prominent crypto firms, leading to financial distress and bankruptcy filings.
Among the impacted entities were notable names in the industry, including Voyager Digital, BlockFi, Celsius Network, and FTX, further amplifying the magnitude of the crisis.