- Terraform Labs Co-founder, Do Kwon, to remain in captivity.
- Montenegro signed an extradition treaty for Do Kwon and Han Chong Joon with the United States.
- Do Kwon reportedly opened a company in Serbia after a red notice was issued for his arrest.
- Do Kwon first fled after the issuance of the red notice.
The co-founder of Terraform Labs, Do Kwon, and the former chief financial officer of the exchange, Han Chong Joon, reportedly lived in Serbia before they were both taken in a while trying to flee the neighboring Montenegro using falsified documents.
The two will not be released on bail in Montenegro after prosecutors submitted an appeal on the decision to release them on bail.
The two former executives of Terraform were granted release to be on house arrest for 400,000 euros ($435,000) bail by the Basic court in the country’s capital, Podgorica, as of May 12, the bail terms were proposed to the court by both of their defense teams. The week after, prosecutors appealed to the high court against the decision.
The focus has now shifted to the primary court reconsidering the bail of Kwon and Chong-Joon; there is, however, no limit on the number of times an appeal can be made on decisions made by the primary court. While this is ongoing, there have been efforts by both the United States and South Korean authorities to extradite Kwon.
The former co-founder also faces possible charges in Singapore, with eight filed accounts hanging on his neck from U.S. prosecutors, ranging from commodities fraud to securities fraud, wire fraud, and a conspiracy to defraud and engage in market manipulation.
There is also an additional filing from the U.S. Securities and Exchange Commission against Kwon before he was arrested and a class-action lawsuit waiting in California.
The co-founder of Terraform Labs reportedly faces up to 40 years imprisonment in the ongoing case against him in South Korea and another five years on charges against him in Montenegro, where a trial has been scheduled for him on June 16.
The country also has an extradition treaty with the United States but has made no plans with Singapore or South Korea.
Kwon had quickly disappeared after Terraform’s ecosystem collapsed in May 2022 but continued to maintain a social media presence while frequently denying any reports of him being in hiding, even after an Interpol red notice was issued for him. It was later uncovered that Chong-Joon and Kwon had been living in Serbia, and Kwon had quickly opened up a consulting company in Serbia after a red notice had been issued for his arrest.
Conclusion
South Korea and the United States had previously been in contact with Montenegro authorities to fight for who would gain the extradition right of Do Kwon. Still, the country has now made a treaty with the United States for his extradition, which means they won the right.
