Terraform Labs, the founder of the company, is wanted in South Korea and the United States and will soon be extradited from Montenegro. The decision to proceed with the extradition was made after the relevant request was approved by the judiciary in Montenegro. The Supreme Court has officially announced that the legal requirements for the extradition of the accused have been met, in response to the requests from the governments of South Korea and the USA.
The destination country for Kvon’s extradition is currently unknown. The court has stated that Kvon has agreed to be extradited to South Korea through a simplified procedure, but the final decision on the direction of his extradition will be made by the Minister of Justice of Montenegro.
Kvon was detained in Montenegro in March 2023. He was arrested after entering the country using fake passports, as his South Korean passport had been canceled more than 5 months prior to his arrival.
Kwon’s whereabouts remained unknown after he left Singapore in 2022. Despite Kvon’s claims that he was not in hiding, a warrant had already been issued in South Korea for his arrest due to violations of the law on capital markets. Additionally, Kvon became the subject of a red notice issued by Interpol.
A red notice is a request to law enforcement agencies around the world to locate and provisionally arrest an individual pending extradition or similar legal action.
Terraform Labs promoted its Terra USD cryptocurrency and similar Luna tokens as secure investments that were not prone to depreciation. However, these claims were debunked after the collapse of the company, resulting in a financial loss of $40 billion and triggering a ripple effect in the entire cryptocurrency industry, referred to as “cryptosima”.
Following Kwon’s arrest at Montenegro Airport, the Federal Court of Manhattan in New York charged him with eight offenses, including conspiracy for deception, futures fraud, securities fraud, fraud using electronic communications, and market manipulation conspiracy.
Kvon and his company are also facing civil claims from the Securities and Exchanges and Exchange Commission (Sec) commission. In August 2023, the judge in Manhattan rejected Terraform Labs’ appeal regarding these claims. K