Do Kwon’s representative lawyer confirm that it will not be possible for Kwon to comply with the SEC’s extradition request because of the legal hurdles in Montenegro.
Do Kwon is the main co-founder of Terraform Labs, a South Korean blockchain firm behind the Terra blockchain which collapsed badly in May of last year because of the high volatility in the crypto market. Luna coin & UST stablecoin were two native tokens of the Terra blockchain & both of the tokens were integrated via a protocol but later Investigations found that the UST stablecoin price was controlled by a third-party firm funded by Terraform labs.
On 27 Sep 2023, A filing by Kwon’s lawyers confirmed that it would be impossible for Kwon to appear on behalf of the United States Securities and Exchange Commission (SEC) to answer the questions related to Terra crypto fraud & related all other financial activities.
The representative lawyers confirmed that Kwon is not free to appear because he is busy with legal hurdles in Montenegro. In March of this year, Kwon was detained by the local police authorities in Montenegro with forged documents (passport & personal identification cards).
Currently, Kwon is living in Montenegro on behalf of a bond bail and all of the proceedings will take time to complete, from penalty to punishment, and after that he will be extradited to his native country South Korea where enforcement agencies are wildly waiting to conduct deep investigations in the Terra crypto fraud to discover the main culprit behind the whole multi-billion crypto fraud.
The filing noted that Kwon is currently able to answer all the SEC’s questions related to Terra crypto fraud in the written form but that will not be accepted by the SEC body, as it would be inconsistent with his right to due process under U.S. law.
The US SEC sued Do Kwon in Feb of this year under several charges e.g. unregistered securities offerings in the US jurisdiction, targeting US investors via Luna & UST stablecoin without any regulatory approval, & doing fraud with millions of US citizens via Terra’s crypto token businesses.