Do Kwon Cannot Be Extradited To South Korea, This Is The Reason!

Terraform Labs founder, Do Kwon, has been arrested by the Montenegro police. (Photo; Doc. TechResearcho)

JAKARTA - The collapse of the UST algorithmic stablecoin and the Terra LUNA token which fell more than 99 percent in May 2022 was the latest occurrence in cryptocurrency history. As a result of the fall of UST and LUNA, investors were forced to suffer losses of around US$40 billion (equivalent to Rp603 trillion). Plus the loss of a number of lives due to suicides by investors in South Korea.

This case raises a lot of debate in the crypto industry and raises concerns about investment security in the market. Now, the latest development of this case is the arrest of co-founder of TerraForm Labs, Do Kwon, by police at Montenegro when he was at Podgorica airport. Kwon is suspected of being involved in the algorithmic stablecoin failure and is battling the legal process that has taken place in several countries.

Do Kwon is a fugitive by the authorities in South Korea. However, the Terra LUNA boss plans to appeal his detention, which was extended for 30 days by the Montenegro court. The prosecutor's office Montenegro stressed that Do Kwon must be put on trial for passport falsification cases before he can be extradited to South Korea or the United States.

According to reports from local officials in Montenegro, they could not verify Kwon's immigration documents if he entered the country without going through the right track or following entry procedures. If Kwon is found to have entered illegally, as a result, he will receive additional punishment.

According to a Coingape report, the court came to the conclusion of extending the detention period to 30 days, stating that Kwon and the other individuals were "foreigners" living in Singapore, had a great opportunity to escape, and their identities had not been proven for sure.

Prosecutor Haris Shabotich alleges that if Kwon was arrested without causing additional legal problems, such as by using his Korean passport, he would be able to immediately proceed to the criminal extradition process. However, the situation became more complicated when he was a party to a criminal case that was being tried in a Montenegro court.

Do Kwon may also have to account for his role in the failure of LUNA and UST algorithmic stablecoins, which resulted in a loss of 40 billion US dollars (equivalent to Rp603 trillion) in cryptocurrencies, in courts in the United States. However, the term for Do Kwon's extradition from Montenegro remains unknown due to legal proceedings that may hold Kwon for another thirty days.

The legal situation faced by Do Kwon and his role in the failure of LUNA and UST greatly affected the price of the crypto market. The Montenegro court ruled that passport forgery is a serious crime that could result in imprisonment of up to five years. Meanwhile, Do Kwon had to face legal problems from several countries at once.