Do Kwon Set Free from Montenegrin Detention as SEC Accuses “House of Cards”

Terraform Labs co-founder, Do Kwon, has been released from jail in Montenegro following the Supreme Prosecutor’s skepticism over the High Court’s extradition treaty decision.

Amidst this complex legal situation, the U.S. Securities and Exchange Commission (SEC) has referred to Kwon’s foundation, Terraform Labs, as a “house of cards.”

Here are the latest developments:

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

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

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

The “House of Cards” Allegation
Meanwhile, in New York, the SEC has launched a civil fraud trial against Kwon and Terraform Labs. The SEC accuses them of misleading investors regarding the stability of Terra and its integration into a popular Korean mobile payment app.

According to SEC attorney Devon Staren, “Terra was a fraud, a house of cards, and when it collapsed, investors lost nearly everything.”

The trial of Do Kwon and Terraform Labs is still pending as Kwon remains outside the U.S., and the extradition process has not been finalized. Simultaneously, Terraform Labs’ bankruptcy filing is still in progress.

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

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