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Do Kwon will be extradited to his home country of South Korea after months of deliberation between various states.
The decision comes as a Montenegro appeals court refused to overturn a previous ruling that approved the LUNA founder's extradition to Korea.
Earlier this month, the high court ruled that Do Kwon could be extradited to South Korea to face criminal charges regarding the collapse of LUNA but new documents suggest Do Kwon unsuccessfully appealed the decision.
Do Kwon was originally arrested in Montenegro in March 2023 for traveling on a fake passport. He then found himself locked in a tug-of-war between the US and South Korea.
In December 2023, Montenegro Justice Minister Andrej Milović reportedly said in private that he plans to extradite Do Kwon to the US.
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Not so bad?
After all the back and forth, Do Kwon is officially heading to South Korea. Whilst his team initially appealed against the extradition, it could be seen as a soft win for him as white-collar crime penalties in the country are generally lower than in the US.
That said, the South Korean government would still need to reach a deal with the US to have him tried in New York. The United States could contend that it possesses greater capability to confiscate Do Kwon's assets globally and consent to jointly distribute them with South Korea.
On 22 January 2024, Terraform Labs revealed it filed for Chapter 11 bankruptcy in Delaware. The firm said the move was “a strategic step that will enable it to continue its operations and support litigation pending in Singapore and U.S. litigation involving the Securities and Exchange Commission.”
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Terraform Labs also vowed to “meet all financial obligations to employees and vendors during the Chapter 11 case” without requiring additional financing. The firm's assets and liabilities range between $100 million and $500 million.
“The Terra community and ecosystem have shown unprecedented resilience in the face of adversity, and this action is necessary to allow us to continue working towards our collective goals while resolving the legal challenges that remain outstanding,” Chris Amani, chief executive of Terraform Labs, said.
