By
Steve Muchoki
June 14th, 2024
The SEC highlighted the progress in Kwon’s extradition case, whose fate has been uncertain for months. The question of whether Kwon will be extradited to the United States or his native South Korea remains unresolved.
The authorities in Montenegro recently met with the representatives of the US Securities and Exchange Commission (SEC) to discuss Do Kwon, the founder of Terraform Labs, the firm behind the rise and fall of the UST algorithmic stablecoin and crypto asset LUNA.
The delegation from the SEC was led by Gurbir Grewal, Director of Investigations; Davisid Hirš, Head of Crypto Property Unit and Cyber Unit (CACU); Horhe Tenreiro, Deputy Chief CACU; Metju Greiner, Assistant Director of the Office for International Affairs (OIA); and Marli Miller, Senior Special Adviser to the OIA.
The SEC shared its broad views on market regulation with authorities in Montenegro, said the Montenegrin officials. The meeting was set up to strengthen bilateral cooperation in investor protection and supervision of financial markets.
Justice Minister Andrzej Milovic also attended the conference and gave an in-depth overview of the SEC’s operating principles, specifically focusing on how the agency monitors and protects investors involved in stock and cryptocurrency trading. He highlighted the regulatory framework available to investors and the actions taken by the SEC in various finance-related cases.
Talks Held Between Montenegrin Authorities and the SEC
Importantly, the main topic of discussion was the SEC’s investigation of Do Kwon. Milovich was briefed on the findings of the investigation and the ongoing legal action against Kwon in the United States. The SEC also highlighted the progress in Kwon’s extradition case, whose fate has been uncertain for months. The question of whether Kwon will be extradited to the United States or his native South Korea remains unresolved.
In early April, Montenegro’s Supreme Court ruled that the decision to extradite Kwon lay with Minister Milovic. While Kwon was originally scheduled to be extradited to South Korea in March, a move by Montenegro lawyers opposed the decision.
In February 2023, a US jury found Kwon and Terraform Labs liable for civil fraud for the collapse of UST. Kwon’s downfall began with his arrest in March 2023 for traveling in Montenegro with fake documents.
On the other hand, the SEC sought a $5.3 billion fine from Terraform Labs while the lawyers representing the Kwon-founded firm argued that the SEC was overstepping its authority, adding that it had no control over crypto assets.
Following the end of his prison term on March 23, 2024, he was placed in a reception center for foreigners, with his passport confiscated by local authorities.
Minister Milovic emphasized the importance of international cooperation in combating financial fraud and protecting investors. Both sides welcomed the meeting as an important step to strengthen relations between Montenegro and the United States in the fields of justice and economic policy.
Although specifics of the conversations were not disclosed, the meeting hints at possible developments in the disgraced crypto entrepreneur’s extradition.