June 5, 2024
Montenegrin Justice Ministe
People in Crypto

Montenegrin Justice Minister Talks Do Kwon Case with SEC

Montenegrin Justice Minister Meets with SEC

The Government of Montenegro announced that Justice Minister Andrej Milović engaged in discussions regarding the investigation into Terraform Labs co-founder Do Kwon with officials from the United States Securities and Exchange Commission (SEC).

Discussion with the SEC

On May 22, the Montenegrin government reported that Justice Minister Milović held a meeting with SEC personnel, including Enforcement Director Gurbir Grewal. The discussions focused on the SEC’s case against Kwon, in which both he and Terraform Labs were found liable for fraud in April.

Extradition Proceedings

Do Kwon remains in Montenegro while the country’s courts deliberate over extradition requests from both the U.S. and South Korea. Arrested in March 2023 for using falsified travel documents, Kwon was sentenced to four months in prison. Despite being free to travel within Montenegro after his release, several appeals by Kwon’s lawyers have delayed the extradition process. Justice Minister Milović may ultimately determine whether the Terraform co-founder will be extradited to the U.S. or South Korea, depending on the court’s decisions.

Financial Implications and Legal Proceedings

In the United States, a judge is set to consider remedies from Terraform and Kwon at a hearing on May 29, following the jury’s fraud verdict. The SEC has proposed that the co-founder and Terraform pay approximately $5.3 billion in disgorgement, prejudgment interest, and civil penalties.

Way ahead

Terraform Labs faced significant turmoil in 2022 with the collapse of its algorithmic stablecoin, TerraUSD (UST). This financial instability led to the firm filing for bankruptcy in the U.S. in January, with reported liabilities and assets estimated at up to $500 million. As the legal proceedings unfold, the actions and decisions of the Montenegrin Justice Minister and other involved authorities will be crucial in determining the future of Do Kwon and Terraform Labs.

Image by freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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