Do Kwon, co-founder of TerraForm Labs, was reportedly arrested by the Montenegro authorities last week at Podgorica’s capital airport. Kwon, who has been on the run from South Korean authorities, is now set to appeal his detention after the Montenegrin court ruled to extend it by 30 days.
Do Kwon might also face judgment in the US over the collapse of LUNA and UST algorithmic stablecoin collapse that caused a $40 billion loss in crypto. But, the time of his extradition from Montenegro remains uncertain.
Do Kwon Arrested In Montenegro
After arresting Do Kwon, the Montenegrin police charged him with forging official documents, according to reports from Reuters. In a statement, the police said they found fake Costa Rican and Belgian passports in luggage belonging to the founder and another suspect.
Reports show that Do Kwon and the second suspect will be transferred to an investigative judge for further actions based on an international arrest warrant. That is after the court proceedings for the current document forgery charge.
Following Kwon’s recent charges in Montenegro, the court agreed to the prosecutor’s request to extend his detention for 30 days against the official three days acceptable in the country.
The reason is that Kwon is a foreigner who might disappear if granted bail after three days. Local news reports revealed that Do Kwon’s lawyers plan to appeal the Montenegrin court’s 30 days detention extension ruling.
Do Kwon To Face Multiple Count Charges Pending Extradition From Montenegro
Recall that South Korean prosecutors obtained an international warrant against Do Kwon and his accomplices before the Southern District Court in Seoul. Do Kwon and other Terra executives were charged with several criminal offenses relating to market manipulation and other economic law violations.
The Terra founder became a fugitive after his name entered Interpol’s red list following prosecutors’ request. In September 2022, Interpol issued a red notice to arrest the 31-year-old Terra founder across its 195 member nations.
In addition, the US District Court in Manhattan revealed an eight-court indictment against the notorious Terra founder hours after his arrest. The indictment charged the Terra cofounder with two counts securities fraud, wire fraud, commodities fraud, and conspiracy to defraud.
These follow a civil charge against Kwon and Terra by the US Securities and Exchanges Commission for defrauding crypto investors.
Reports stated that Do Kwon hid in several locations, including Dubai, Singapore, Mauritius, Seychelles, and many more. A source revealed that his last location was Serbia, a country on the eastern border of Montenegro.
With several count charges hanging on Kwon’s head, an American lawyer, Michael Zweiback, believes the culprit will likely face extradition to the US or South Korea. If he ends up in the United States of America, Kwon might meet the same justice department in charge of FTX’s Sam Bankman-Fried case.
Featured image from BBC and chart from Tradingview.com