A court in Montenegro has granted approval for the extradition of Do Kwon, the cryptocurrency entrepreneur linked to the crash of two digital currencies—TerraUSD and Luna—to either South Korea or the US.
Kwon, who was apprehended at the airport in Montenegro in March with counterfeit documents, awaits a final decision on extradition from the Montenegrin Justice Minister. However, prior to this decision, Kwon is required to serve a four-month prison term in Montenegro for forgery, as per reports from CoinDesk.
The 32-year-old entrepreneur, responsible for the multi-billion-dollar crash of the mentioned cryptocurrencies, along with his chief financial officer identified as Han, were detained at Podgorica Airport while attempting to travel to Dubai using forged passports.
Following their arrest, a Montenegro court sentenced Kwon, the co-founder of Terraform Labs, and his associate to four months in prison for employing counterfeit passports.
Kwon and his aide had fled South Korea while under investigation regarding the crash of Terraform Labs' TerraUSD and Luna coins, resulting in a loss of nearly 50 trillion won ($38 billion) in market value.
In South Korea, prosecutors sought an arrest warrant for Kwon, alleging false information provision to investors and violation of capital market laws.
Interpol issued a red notice for Kwon, designating him as a high-priority wanted suspect. Consequently, Kwon's passport has been invalidated.
TerraUSD was initially designed as a stablecoin pegged to stable assets, like the US dollar. However, holders of TerraUSD and Luna incurred substantial losses, estimated at over $40 billion in market value, after the stablecoin significantly plummeted below its $1 peg in May.
(With Agency Inputs)
ALSO READ | Crypto Exchange Genesis Faces Legal Battle, Sues Gemini for $689 Million Recovery
