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Do Kwon Set For Court Hearing In Montenegro

by NZU
24 4 月, 2023
in Crypto News
0
Do Kwon Set For Court Hearing In Montenegro

Terraform Labs co-founder, Kwon Do-hyeong, will appear in a court in Montenegro in connection with charges of attempting to travel using a fake passport. 

The news was broken by the court website in Podgorica, the country’s capital. 

Do Kwon In Custody 

Terraform Labs co-founder Do Kwon was arrested at the airport in Podgorica, the capital of Montenegro, on the 23rd of March. Do Kwon was arrested along with Han Chang-Joon, the chief financial officer of Terraform Labs. Both have been placed under custody in the country. Terraform founder Do Kwon is the subject of a red corner notice from Interpol which requests that authorities apprehend him. 

“Montenegrin police have detained a person suspected of being one of the most wanted fugitives, South Korean citizen Do Kwon, co-founder, and CEO of Singapore-based Terraform Labs.”

According to the authorities in Montenegro, Do Kwon and Chang-joon were attempting to travel to Dubai. Both individuals held several identification papers and travel documents under different names and nationalities. Both Do Kwon and Chang-Joon are South Korean nationals. 

Do Kwon Deemed A Flight Risk 

Following the arrest of Do Kwon, the Montenegrin court announced their indictment on the 21st of April, extending their detention. The court did so because it deemed Do Kwon and Chang-Joon as flight risks. Do Kwon now faces a court hearing scheduled for the 11th of May, facing changes of traveling using a false passport. 

The Case Against Do Kwon 

Do Kwon is wanted by authorities in the United States of America and South Korea, where he stands accused of a litany of charges, including fraud. All of the charges are related to the collapse of the $40 billion Terra Luna stablecoin and cryptocurrency project. The project suffered a spectacular collapse, dealing a significant blow to the larger crypto ecosystem. 

On his part, Do Kwon has denied all charges against him. Terraform Labs has also stated that the investigation into the collapse of Terra Luna has become incredibly politicized and called the allegations against it baseless. In another development, lawyers representing Do Kwon in the United States of America have petitioned a court in the Southern District of New York to dismiss a lawsuit filed by the Securities and Exchange Commission (SEC) accusing Do Kwon of fraud involving “crypto asset securities.” 

Kwon’s lawyers have asserted that the Terra stablecoin is a currency, and the Securities and Exchange Commission’s assertion of imposing securities regulations over digital assets is illegal. 

US And South Korea Both Seek Extradition

Meanwhile, the United States of America, along with South Korea, are both seeking the extradition of Do Kwon. Do Kwon faces multiple charges in both countries. Authorities in South Korea charged Do Kwon with violating its Capital Markets Act. Meanwhile, federal prosecutors in the United States have charged Kwon with two counts each of wire fraud, securities fraud, commodities fraud, and conspiracy.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Credit: Source link

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