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Crypto

No Bail For Kwon, As Multiple Nations Are Seeking His Extradition

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– Do Kwon, the South Korean entrepreneur, emerges as a central figure in the crypto-corruption nexus.

Crypto and corruption often find their way together due to some notorious minds. The Terraform Labs co-founder, Do Kwon, emerged as the new poster boy in this scenario. The South Korean entrepreneur was found guilty of conspiracy, commodities fraud, wire fraud, and securities fraud. He is also responsible for the collapse of cryptocurrencies terraUSD and Luna to $40bn. 

Soon after the failure of Terra Labs in 2023, Kwon disappeared and received a red notice from Interpol. He, however, maintained a social media presence and rejected the allegations of escape. The investigation revealed that Kwon and Chong-Joon, the former CFO, lived in Serbia. They even opened a consulting company in that brief duration. 

Both were arrested in March for trying to leave the country using forged documents. On May 24, Bloomberg reported that the Montenegro authorities rejected their bail plea. On May 12, the Podgorica court released him and his accomplice to house arrest on 400,000 Eurus ($435,000). 

Why was the bail plea rejected?

It is not clear on what grounds the bail plea was rejected. However, it is most likely due to the charges by the governments of the US, Singapore, and South Korea. The US and South Korean governments are seeking Kwon’s extradition. The Securities and Exchange Commission of the US has also filed a class-action lawsuit against him in California. 

The South Korean government has slammed 40-year imprisonment on Kwon, whereas Montenegro declared it would be five years. Reportedly, the Montenegro government has an extradition pact with the United States, but it is now with South Korea or Singapore. Kwon’s trial in Montenegro will begin on June 16, and he is expected to file a bail plea again.

As per the law, there is no limit on the number of times it can be appealed. So it would be interesting to see how the developments are going further.  

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