Home News Legal Limbo: The Ongoing Saga of Former Terraform Labs CEO Do Kwon

Legal Limbo: The Ongoing Saga of Former Terraform Labs CEO Do Kwon

by dave
1 minutes read

Do Kwon, the former CEO of Terraform Labs, finds himself in a legal limbo as Montenegrin authorities have placed him in a “reception center” for foreigners following the end of his prison term on March 23. The move comes after a five-hour interrogation by a local inspector, as Kwon awaits a new court decision regarding his extradition.

Kwon’s legal representative, Goran Rodić, has criticized the treatment as illegal and plans to file a complaint with a local administrative court. Meanwhile, Kwon’s passport has been confiscated, adding to the uncertainties surrounding his legal situation.

The Montenegrin court has shown indecision regarding Kwon’s extradition in recent weeks. The Supreme Court delayed his expulsion to South Korea after local prosecutors challenged the decision, arguing that the court had overstepped its authority. Initially, Kwon was set to be extradited to the U.S., but that decision was overturned on appeal.

In the backdrop of these legal proceedings, the crypto world is still reeling from the collapse of Terraform Labs’ Terra and Luna cryptocurrencies in May 2022, which wiped out over $40 billion in market value. Both U.S. and South Korean authorities are pursuing charges of fraud and securities law violations against Terraform Labs and Do Kwon. The U.S. civil trial on the Securities and Exchange Commission’s fraud charges is scheduled to commence on March 25.

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