A Montenegrin High Court has ordered Do Kwon, the co-founder of the collapsed Terra ecosystem, to be taken into extradition custody in the country for six months. During the custody process, the court will decide on South Korea's extradition request for Kwon. The South Korean prosecutors issued an arrest warrant for the 31-year-old founder in September 2022 in a lawsuit defined as the largest-ever financial fraud case in the country. - The U.S. also seeks Kwon's extradition.
- Both countries do not have a direct extradition treaty with Montenegro.
- Montenegrin Special State Prosecutor's Office will also question Kwon on his alleged ties with a local politician, Milojko Spajić.
- Terra founder allegedly contacted Spajić in a letter several days before the latest round of elections in Montenegro, which was denied by the politician.
- Kwon was arrested at the Podgorica Airport in Montenegro in March with Han Chang-Joon, the chief financial officer of Terraform Labs, while trying to fly to Dubai carrying falsified traveling documents.
- The founder faces many lawsuits and investigations in several countries, including South Korea and the U.S., with allegations such as tax fraud, deceiving investors, racket collecting, and building a Ponzi scheme.
On the other hand, a Montenegrin Basic Court most recently reapproved the bail terms of Do Kwon and Han Chang-Joon to release the pair from prison on $436,000 bail for each. - The multibillion-dollar Terra ecosystem collapsed last year after its native token Luna's price plummeted nearly to zero in May 2022 and lost all its value against the U.S. dollar (USD), triggering a prolonged crypto winter.
- The collapse caused over $60B to be wiped off the crypto market.
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