Following the passport forgery case involving Do Kwon, the founder of Terra, the Montenegro court has accepted his bail request of 400,000 euros ($428,000). This decision came after a previous annulment by the high court. Kwon’s arrest has led to extradition requests from both South Korea and the U.S. authorities due to the collapse of his multi-billion dollar cryptocurrency enterprise in May of the previous year.
According to senior prosecutor Dan Sunghan, Kwon faces the possibility of spending a significant portion of his life in prison. Initially, he would serve his jail sentence in South Korea before being extradited to the United States to serve further time. The prosecutor clarified that it is conceivable for an individual to be prosecuted and sentenced in both jurisdictions for different charges. It is worth noting that Dan serves as the Director of the Financial Crime Investigation Bureau at the Seoul Southern District Prosecution Service.
The prosecutor further stated that Kwon could be extradited to the U.S. to stand trial, with subsequent execution of the sentence taking place both in South Korea and the U.S. Additionally, the prosecutor anticipates that Kwon may receive a “record domestic sentence” for the financial fraud case, potentially exceeding four decades in prison.
Related Reading: Terra Co-Founder Do Kwon Gets Bail Once Again
How Soon Will Do Kwon’s Extradition Occur?
The collapse of Terra and its stablecoin UST led to the closure of Terraform Labs. These events, in combination, caused a significant downturn in the broader market, leading to a sudden onset of a bear market. The prosecutor reiterated the importance of extraditing Kwon to his home country first and emphasized the following statement:
“This is the largest financial fraud or financial securities fraud case that has ever happened in South Korea.”
Kwon has refuted the charges of using forged travel documents in Montenegro. While his bail request has been approved, it remains uncertain whether Montenegro will ultimately extradite him to South Korea or the United States. The prosecutor said:
“It’s our understanding that the extradition process can take up to nine months, depending on how long the suspect has been in custody and so forth.”
It is worth noting that the criminal penalties in the United States are significantly higher compared to those in South Korea. The disparity between the maximum prison terms is substantial. According to recent reports, in the U.S., the penalties for various crimes can be cumulatively added, potentially resulting in a maximum sentence of over 100 years for Do. On the other hand, the maximum sentence in South Korea is approximately 40 years.