Key Takeaways:
- Legal Appeal in Montenegro: Do Kwon’s legal team has appealed a high court decision that allows the Montenegrin Justice Minister to decide on Kwon’s extradition, either to the United States or South Korea.
- U.S. Legal Consequences: A U.S. jury found Terraform Labs and Do Kwon liable for fraud, with the SEC aiming for a $5.3 billion judgment against the company and $100 million in penalties against Kwon.
- Impact on Crypto Market: The collapse of Terraform Labs significantly influenced the broader cryptocurrency market downturn, contributing to the bankruptcy of several major firms.
The legal entanglements surrounding Terraform Labs co-founder Do Kwon persist, as his attorneys have lodged an appeal against a ruling by a high court in Montenegro.
This ruling would have delegated the decision of Kwon’s potential extradition to the United States or South Korea to the Montenegrin Justice Minister.
TERRA FOUNDER DO KWON FIGHTS EXTRADITION AMID LEGAL SAGA
— BSCN (@BSCNews) April 24, 2024
– Do Kwon, Terraform Labs co-founder, initiates a new appeal in the Montenegrin legal battle, criticizing the court's "bizarre" interpretations.
– Kwon's legal team filed the appeal against the High Court of Podgorica's… https://t.co/TbtgWuu9I2 pic.twitter.com/BASrWNGI5M
Reports from Montenegrin media outlet Vijesti on April 23 state that Kwon’s legal team is challenging a decision made on April 8 by the High Court in Podgorica.
This decision came after the Supreme Court of Montenegro supported an appeal for a protection of legality, reversing a lower court’s verdict that had previously cleared the way for Kwon’s extradition to South Korea.
The legal representatives for Kwon have denounced the high court’s ruling as both “unfounded and illegal,” criticizing it as a peculiar interpretation of legal principles.
Terraform Labs co-founder Do Kwon filed a fresh appeal in his Montenegrin legal saga, accusing a court of "bizarre" legal interpretations. Click to read: https://t.co/4HvZeg93ae
— Decrypt (@decryptmedia) April 24, 2024
The appeal casts further uncertainty on whether the question of Kwon’s extradition will be resolved soon, which continues to be a topic of legal back-and-forth through various judicial levels.
Do Kwon was detained in March 2023 in Montenegro under accusations of possessing forged travel documents while trying to depart the country.
Despite the charges, he remains free within Montenegro as the courts examine the procedural authority for his potential extradition.
In the United States, a jury has already held both Terraform and Kwon accountable for fraudulent activities in a lawsuit initiated by the U.S. Securities and Exchange Commission (SEC).
Following the trial, the SEC expressed intentions to pursue a staggering $5.3 billion judgment against the company, with Kwon facing $100 million in civil penalties.
The downfall of Terraform Labs in 2022 was a significant catalyst in the broader cryptocurrency market collapse, leading several major firms, including FTX, BlockFi, and Celsius, to declare bankruptcy.
BREAKING:
— WhaleFUD (@WhaleFUD) January 22, 2024
Terraform Labs, led by Do Kwon, has officially initiated Chapter 11 Bankruptcy proceedings, as per the court's website.
Terraform itself sought Chapter 11 bankruptcy protection in the U.S. in January 2024.
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