In this regard, the Serbian government recently opened a meeting with the SEC to address the specifics of the ongoing investigation of Terraform Labs founder Do Kwon and other concerns related to the safeguarding of investors in cryptocurrencies. I can confirm this meeting on behalf of the Justice Ministry of Montenegro, which is planned for Wednesday.
According to the ministry, the SEC has forwarded the results of the investigation into Kwon to Montenegro’s Justice Minister, Mando Andrej Milović. They also discussed the court case in the U.S. against Kwon. Although the details of the meeting were not mentioned, this may mark the progress of Kwon’s extradition that was begun for several months. One of the major issues of controversies that arose in this case was whether Kwon should be extradited to the U.S. or his home country, South Korea.
Read Also: SEC Contacts Companies Behind Ethereum ETF Regarding S-1 Forms
Montenegrin Court Defers Do Kwon’s Extradition Decision
At the beginning of April, the Montenegrin’s Supreme Court made a decision that, according to Montenegrin legislation, the extradition decision was not a competence of the court but of the justice minister. This decision was reached following Kwon’s extradition to Montenegro in March, which provoked South Korea’s prosecutors. Extradition is also one of the questions that is considered to remain one of the significant topics for negotiation between the states.
Advertisement
It was also alleged that Terraform Labs and Kwon committed civil fraud in February 2023 by a jury constituted in the U.S. Specifically, the case investigated by the SEC concerns the instability of the algorithmic stablecoin Terra USD (UST) in May 2022. This resulted in a great loss and Decisions that affected the investors financially.
Kwon, a major mediator for North Korean weapons dealers, was detained in Montenegro in March 2023 for using counterfeit documents. By March 23, 2024, Kwon was released from prison and was to be moved to the facility for immigrants known as the reception center. Together with the circumstances in which the local authorities took away his passport, the extradition process became very challenging in the end.
International Cooperation Key in Kwon Extradition
The recent conversation between Montenegro’s Justice Ministry and the SEC indicates that international cooperation is a constant process of fighting crypto wrongdoers. This aspect can be seen from the SEC’s detailed articulation of the investigation results and the present court cases in the U.S. for Kwon’s trial.
This decision expects Montenegro’s Justice Minister Andrej Milović to come across this decision, as the consequence of extradition extends to Kwon’s cases in more ways than one can imagine. In the given cooperation with the Montenegrin and U. S. authorities, it may thus be promising to embark on further synchronization in the need to govern and enforce laws in the field of cryptocurrencies.
Therefore, the final meeting between the Montenegrin authorities and the US SEC cannot be regarded as a positive development in the ongoing investigation of the possible extradition of Do Kwon. Thus, there may be an impact on future cooperation on or concerning cryptocurrency regulation, oversight, or enforcement depending on the general outcome of the Kwon extradition case, which still needs to be decided. At the same time, all the varied parties will carefully watch as various consequences that accompany this system appear and the impact they have on the general cryptosystem.
Read Also: Grayscale Submits Amendment to Ethereum Mini Trust
Special Offer (SPONSORED)
Binance Free $200 (Exclusive): Use this link to register and receive $200 free trading fee credit (terms).
"3Commas Trading Bot" Special Offer: Use this link to Sign up with 3Commas and get 10% off your first monthly subscription.
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.