A few weeks ago, the Montenegrin police managed to get their hands on Do Kwon, who had been on the run for months. Now, a long-term legal battle is underway. The entrepreneur’s lawyers are already trying a first gamble.
Do Kwon’s lawyers want to have the procedure canceled
The Do Kwon case is experiencing a new twist. While he is accused of having falsified documents during his stay in Montenegro, his lawyers are trying to save him. Will they make it? Nothing is less certain. However, they seem to have a well-oiled strategy: have the SEC complaint dismissed.
Indeed, the American stock market policeman complained about Kwon’s actions, long before his arrest. The SEC notably accused him of having robbed American investors by offering them unregistered securities. A move that would have led to the collapse of Terraform Labs, with a loss of approximately $40 million.
Do Kwon’s defense against extradition requests
For the businessman’s lawyers, these allegations are simply unfounded. The argument they defend is that the charges against Do Kwon lack legal basis. Because, to be valid, the grievances should, according to them, be proven. What the SEC has not yet done.
Better, the lawyers maintain that the American legislation would prohibit the regulator “to use federal securities law to assert jurisdiction over digital assets in this matter.”
That said, the lawyers for the head of Terraform Labs took legal action to have the SEC’s complaint quashed. The goal: to lift the charges against him in the United States.
Could this be a headlong rush? At a time when Do Kwon is overwhelmed by several extradition requests, one is tempted to think so. Indeed, Montenegrin authorities have received extradition requests from Seoul and New York for Do Kwon.
Meanwhile, Shin Hyun-Seong, co-founder of Terraform Labs, is free to move. Recently, a court in the South Korean capital even refused to issue an arrest warrant against the latter. The reason: the improbability of the facts with which he is accused. However, we know that several executives of the company are involved in misappropriation of assets valued at $160 million.
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