In the midst of the legal issues facing Terraform Labs and its creators, their cryptocurrency, Terra Classic (LUNC/USD), is outperforming Bitcoin and Ethereum. Terra Classic has surged by 25%, reaching $0.000099, while BTC and ETH have both experienced over a 2% decline.
TerraClassic, a decentralized stablecoin on Terra Classic, has surged by over 223% in the past 24 hours following a de-pegging incident in May 2022. Meanwhile, a local court in Podgorica has paved the way for the potential extradition of Do Kwon, the founder of Terraform Labs.
Legal Troubles Mount for Terra Founder Do Kwon
In the aftermath of the Terra cryptocurrency debacle, international legal scrutiny has intensified for Do Kwon, raising the possibility of his extradition to South Korea or the United States. Kwon was apprehended at Podgorica’s airport due to falsified documents, leading to his current detention.
The legal challenges facing Kwon have escalated, particularly following the high-profile collapse of the cryptocurrency terraUSD last year. This collapse triggered widespread outcry from investors and regulatory bodies alike.
Charges against Kwon include fraudulent unfair trading, severe punishment for certain economic crimes (fraud), and violations of the Capital Market and Financial Investment Act.
Extradition Decision Looms for Terra’s Do Kwon as Legal Woes Deepen
The final decision on Do Kwon’s extradition rests with the Montenegrin Justice Minister, but Kwon is already serving a four-month prison term in Montenegro for using falsified documents.
In a parallel development, Daniel Shin, Terraform Labs’ co-founder, faced indictment in South Korea in April, charged with violating capital market laws. Authorities in South Korea have frozen assets totaling $185 million. Despite the mounting allegations, Shin asserts his innocence regarding the company’s dramatic collapse, emphasizing his disassociation from Terraform Labs two years before the incident.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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