Do Kwon, the co-founder of Terraform Labs, is set to be released from Spuž prison in Montenegro but will remain in the country under court orders. The decision came from Montenegro’s High Court, which has also ordered the confiscation of Kwon’s passport to prevent him from leaving. The court’s directive was reported by the Montenegrin daily newspaper Vijesti, marking the latest development in Kwon’s legal saga.
The legal proceedings against Kwon have attracted international attention, with prosecutors in Montenegro preferring his extradition to the United States rather than South Korea. In the U.S., Kwon could potentially face longer sentences if convicted. This international legal battle follows the collapse of Terraform Labs’ cryptocurrencies, Terra and Luna, in May 2022. The incident erased over $40 billion in market value within days, leading to fraud and securities law violation charges by U.S. and South Korean officials.
Do Kwon’s arrest in Montenegro was facilitated by an Interpol Red Notice, as he was captured for using counterfeit travel documents. This arrest underscores the international efforts to address the legal issues surrounding the Terraform Labs case. The charges against Kwon relate to the significant financial loss experienced by investors following the rapid decline of Terra and Luna, highlighting the risks and regulatory challenges within the cryptocurrency sector.