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

Terraform Labs co-founder, Do Kwon, has finally been released from jail in Montenegro after the Supreme Prosecutor cast doubt on the High Court’s decision to allow his extradition. In the midst of these complex legal issues, the Securities and Exchange Commission (SEC) has referred to Kwon’s foundation, Terraform Labs, as a “house of cards”.

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, but his extradition to either the United States or South Korea is still pending. As previously reported, Kwon will be placed under house arrest with several legal restrictions imposed by the Supreme Court, including a travel ban and passport restriction.

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

A Fragile Structure:

Meanwhile, in New York, the SEC has launched a civil fraud trial against Kwon and Terraform Labs. The SEC accuses them of misleading 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 fraud, a delicate structure, and when it collapsed, investors lost nearly everything.”

The trial of Do Kwon and Terraform Labs is still pending, as Kwon remains outside the United States and his extradition has not been finalized. At the same time, Terraform Labs’ bankruptcy filing is still in progress.

In Conclusion:

Do Kwon’s release on bail is a crucial moment in Terraform Labs’ legal battle. With the SEC’s civil fraud trial unfolding and extradition proceedings looming, the outcome of the case remains uncertain. The allegations of fraud and the portrayal of Terra as a “house of cards” emphasize the high stakes involved.

Tags: Crypto Regulations