Will Do Kwon be extradited to South Korea over the weekend for a joint trial between the US and South Korea?

According to a report by Bloomberg, Terraform Labs founder Do Kwon is set to be extradited to South Korea as soon as this weekend, but the South Korean government may still reach an agreement with the United States to have him first stand trial in New York.

Do Kwon More Willing to be Extradited back to South Korea

Do Kwon was initially sentenced to four months in prison in Montenegro for using a fake passport, and after serving his sentence, both the United States and South Korea requested his extradition. However, according to Bloomberg citing a court statement, the High Court's decision in favor of South Korea was deemed correct because South Korea was the first to make a request for Do Kwon's extradition and based on "other standards."

For Do Kwon and his defense team, this is a victory as they are more willing to be extradited to South Korea where penalties for white-collar crimes are lower compared to the United States. Do Kwon was arrested in Montenegro in March 2023 for traveling with a fake passport. Han Chang-jun, former CFO of Terraform Labs, has also been extradited to South Korea for trial. He is accused of creating a false impression of Terra's normal operations and profiting from the sale of LUNA behind the scenes, making profits exceeding 53.6 billion Korean won, approximately 40.26 million US dollars.

Goran Rodic, Do Kwon's lawyer in Montenegro, stated:

This is the final decision, there will be no further appeal. We are satisfied with the court's ruling, which demonstrates its respect for the rule of law.

He further pointed out that the next step is the actual extradition, which requires coordination between the judicial authorities and police officers of South Korea and Montenegro.

SEC Lawsuit to Commence by End of March

The U.S. Securities and Exchange Commission (SEC) civil lawsuit against Do Kwon and Terraform Labs is set to proceed on March 25th.

They are accused of orchestrating crypto asset securities fraud involving TerraUSD UST, Terra, and other assets totaling billions of dollars.

Do Kwon will also face criminal charges, as U.S. prosecutor Damian Williams previously filed eight charges, including commodity fraud, securities fraud, wire fraud, and conspiracy to commit fraud and engage in market manipulation.

Even if Do Kwon is extradited to South Korea, the South Korean government may still reach an agreement with the U.S. to have him tried in New York first. The U.S. may argue that it has a stronger ability to recover Do Kwon's assets globally and agree to share these assets with South Korea.