Montenegrin police officers escorted Do Kwon, the Korean cryptocurrency entrepreneur behind the collapse of TerraUSD, at a court in Montenegro, on March 23. An appellate court in Montenegro upheld a lower court’s decision last Thursday, paving the way for Kwon’s extradition to Korea.
After months of legal wrangling, the appellate court’s decision to extradite Do Kwon to Korea has left many victims and crypto investors disheartened, even within his home country.
“In Korea, the maximum sentence for economic crimes is about 40 years. However, in the U.S., Kwon is eligible to receive a prison term of over 100 years. Korea is merciful to criminals. That’s why Kwon himself wants to be extradited to Korea. I want justice,” said an office worker surnamed Kim, 35, expressing his frustration to The Korea Times.
Like Kim, many Koreans, including victims, prefer Kwon to face justice in the United States, where penalties for economic crimes are more severe.
“I always hope, but don’t have a strong belief that Kwon will face strict punishment in Korea,” stated Shim Jong-chan, a 28-year-old self-employed individual. “The case is not only for Korean investors but also worldwide. If he has to be punished in a certain country, people believe it should be in the U.S.”
One user in an online crypto community voiced a common sentiment: “I don’t want to feed him in prison with my tax. What a waste of money.”
This perspective, however, contrasts with legal interests, as extradition to Korea could at least guarantee a small amount of financial compensation for victims. If the seized amount is less than the actual losses, it may not be possible to fully compensate all victims outside the court’s jurisdiction. Therefore, bringing Kwon to Korea is seen as the best way to ensure the recovery of losses for Korean victims.
Skepticism persists due to a lack of trust in the country’s legal system and low expectations of retrieving compensation from Kwon, industry officials noted.
“The victims do not expect any realistic compensation from the cryptocurrency fraudsters,” Korean victims of TerraUSD said in a public statement released in June. “We demand the recovery of the ill-gotten gains and severe punishment for Kwon, co-founder Shin Hyun-seong, and other accomplices at Terraform Labs.”
Approximately 280,000 people from Korea are known to have invested in the controversial coin, with total losses estimated to be around $40 billion worldwide.
The backlash intensified following the Montenegrin appellate court’s decision to uphold the lower court’s ruling to extradite Kwon to Korea. The court asserted that it found no issues in reviewing the Podgorica High Court’s decision to prioritize Korea’s extradition request over the U.S., since Korea had submitted its request first. Neither the prosecution nor the defense appealed the high court’s decision, making the ruling legally binding.
Unless unforeseen variables arise, Kwon is expected to soon undergo the process of being extradited to Korea, though the exact date remains unset.
Kwon’s legal troubles began when he flew to Singapore in April 2022 before TerraUSD collapsed, subsequently disappearing from public view. He was apprehended at a Montenegrin airport in March while attempting to use a fake Costa Rican passport.
Initially, the local court’s ruling favored extradition to the U.S. Following Kwon’s appeal, the high court in Podgorica decided on extradition to Korea. However, Montenegrin Justice Minister Andrej Milović intervened to nullify the extradition to Korea, causing the case to revert to its initial stage. Milović’s recent resignation in a cabinet reshuffle has raised speculation that his departure prompted the latest court decision.
“Do Kwon’s extradition to Korea sparks controversy among victims and investors. Discover the latest developments in this high-profile cryptocurrency fraud case.”
