Do Kwon Freed from Montenegrin Prison Amid SEC’s Accusations of a “House of Cards”

Terraform Labs co-founder Do Kwon has been freed from prison in Montenegro after the Supreme Prosecutor questioned the High Court’s decision to allow his extradition. In the midst of these complex legal matters, the SEC has labeled Do Kwon’s foundation, Terraform Labs, as a “house of cards”.

Here’s the latest update:

Do Kwon’s Release and Extradition Status
Do Kwon, the co-founder of Terraform Labs, has been released from prison in Montenegro while awaiting extradition to either the U.S. or South Korea.

As previously reported, Kwon will be under house arrest with various legal restrictions imposed by the Supreme Court, including a travel ban and passport restriction.

Both the U.S. and South Korea are seeking Kwon’s extradition to face criminal charges related to fraud, primarily in connection with the $40 billion collapse of the Terra ecosystem in May 2022.

A Fragile Foundation
Meanwhile, in New York, the U.S. Securities and Exchange Commission (SEC) has launched a civil fraud trial against Kwon and Terraform Labs. The SEC accuses them of deceiving investors about the stability of Terra and its integration into a popular Korean mobile payment app.

According to SEC attorney Devon Staren, “Terra was a fraudulent scheme, a precarious construction, and when it crumbled, investors lost almost everything.”

The trial of Do Kwon and Terraform Labs is still pending, as Kwon remains outside the U.S. and the extradition process is yet to be finalized. Additionally, Terraform Labs’ bankruptcy filing is still being processed.

In conclusion…
Do Kwon’s release on bail is a significant moment in Terraform Labs’ legal saga. As the SEC’s civil fraud trial unfolds and extradition proceedings continue, the outcome remains uncertain. The allegations of fraud and the portrayal of Terra as a “house of cards” emphasize the high stakes involved in the case.

Tags:
Crypto Regulations