Usually, Montenegro authorities typically allot detention for up to 72 hours. However, Kwon’s 30-day extension has been approved after authorities highlighted the greater possibility of an escape.
Last week, the disgraced Terra founder Do Kwon was arrested in Montenegro while trying to fly to Dubai using fake documents. The latest development shows that Do Kwon shall reportedly appeal the court’s decision to extend the detention time for nearly 30 days.
As per the local media Vijesti, a legal representative of Kwon confirmed the appeal against the Montenegrin court’s decision of detaining the Terra founder for longer than usual. As said, the decision came after the Terra founder was caught using fake documents at the Podgorica airport while trying to fly to Dubai.
Translation from Montenegro Minister of Interior Filip Adzic – “ONE OF THE WORLD’S MOST WANTED FUGITIVES WAS ARRESTED IN PODGORICA
Montenegrin police have detained a person suspected of being one of the most wanted fugitives, South Korean citizen Do Kwon…” https://t.co/sCJ0FFrlEk
— Simon Dixon (@SimonDixonTwitt) March 23, 2023
Usually, Montenegro authorities typically allot detention for up to 72 hours. However, Kwon’s 30-day extension has been approved after authorities highlighted the greater possibility of an escape. The court also stated that Kwon was a foreign national whose identity isn’t clearly identified.
Ever since the collapse of the Terra ecosystem Do Kwon has been on the move and hopping places between Singapore, Dubai, and Serbia, as stated by the South Korean authorities.
US Authorities Seek Do Kwon’s Indictment
US prosecutors have charged Terraform Labs founder Do Kwon for orchestrating a massive fraud leading to the $40 billion collapse of the Terra ecosystem.
Last week after his arrest, United States prosecutors in New York were seeking his indictment. Although it’s not clear whether Do Kwon’s arrest was at the request of US authorities, federal prosecutors said that they would seek his extradition to the US.
If sent to New York, the disgraced Terra founder would be facing prosecution by the same office which is currently overseeing a criminal case against FTX founder Sam Bankman-Fried. Manhattan US Attorney Damian Williams recently said that crypto firms have been trying to avoid regulations by basing themselves overseas. However, he added that these actions wouldn’t deter his prosecutors. In July last year, Williams said:
“Web3 is not a law-free zone. Fraud is fraud is fraud, whether it occurs on the blockchain or on Wall Street.”
The collapse of Terraform Labs last year was a major event for the crypto market that spread like a contagion affecting other market players like Three Arrows Capital, Voyager Digital, and, most prominently, FTX.
The US indictment notes that Do Kwon allegedly deceived investors over the working of the Terra blockchain, its technology, and the extent of its adoption by users.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
Bhushan Akolkar
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