Kwon cleared for deportation, but to America or South Korea?

Former Terraform Labs CEO Do Kwon may soon be extradited to the US or South Korea after a decision by the Montenegrin High Court. Kwon agreed to be deported to South Korea, but the final decision rests with Justice Minister Andrej Milovic.

While it is unclear where Do Kwon will be charged after serving time in Montenegro on trumped-up charges, the ministry has hinted that it intends to sign an extradition treaty with the region's foreign policy partner, the United States. Kwon is wanted in South Korea for violating capital market laws.

Kwon chooses South Korea over America

Kaun's lawyers have previously contested the legality of the charges brought against them by US officials. They recently added that Kwon was willing to be extradited to South Korea.

In May of last year, Kwon looked lost after stablecoin TerraUSD (UST) and its sister coin Luna (LUNA) crashed. UST was a stablecoin with a value of one US dollar, with software controlling the creation and burning of LUNA.

Read more: What is Stablecoin? Beginner's guide

After a series of large UST withdrawals, the algorithm failed. Since the smash and burn method had no circuit breaker, it eventually brought the value of both coins close to zero. Korean officials said the software never worked because the algorithm was too difficult to get right.

In September last year, authorities asked Interpol to issue a red notice to arrest Kuo. He was later arrested at the airport in Montenegro with fake passports. He will serve his four-month sentence before being extradited.

Crypto CEOs in front of the firing squad

If convicted, Kwon would be the third crypto CEO to be found guilty of financial crimes since the collapse of Terra. This week, former Binance CEO Changpeng Zhao pleaded guilty to money laundering and violating sanctions laws. His plea could face up to 18 months in prison.

In the year On November 2, a jury found former FTX CEO Sam Bankman-Fried guilty of money laundering and wire fraud. He faces up to 110 years in prison, although the judge may grant him clemency. His sentencing hearing is in March.

Read more: FTX Collapse Explained: How the Sam Bankman-Fried Empire Fell

The proliferation of illegal crypto activity has seen regions such as Hong Kong and South Korea enact laws to protect investors. Singapore, where Kwon lived before TerraUSD collapsed, has also made significant strides in regulations protecting retail crypto customers.

Do you have any idea where Do Kun might end up, America, or South Korea, or something? Please write to us or join the conversation on our Telegram channel. You can also find us on TikTok, Facebook or X (Twitter).