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Terra Price Rises as Do Kwon Avoids Harsher US Extradition — For Now

Last Updated March 6, 2024 10:38 AM
Teuta Franjkovic
Last Updated March 6, 2024 10:38 AM
By Teuta Franjkovic
Verified by Peter Henn

Key Takeaways

  • The Montenegrin Appellate Court reversed the lower court’s decision to extradite Do Kwon to the US.
  • Both US and South Korea sought extradition.
  • LUNC and LUNA tokens see price fluctuations.

The Appellate Court of Montenegro has overturned  Do Kwon’s extradition to the US, marking a pivotal moment in the Terra founder’s legal journey.

This comes after his arrest in March 2023, adding a new chapter to the ongoing saga of his extradition process.

Terra Founder Do Kwon Prevails in Appeal Against U.S. Extradition

In the latest twist in the ongoing legal drama surrounding Terraform Labs co-founder Do Kwon, the Appellate Court of Montenegro has overturned  a lower court’s ruling that approved his extradition to the United States.

The decision, made on March 5, nullifies the High Court of Podgorica’s previous authorization for Kwon’s extradition. The Terra founder is facing criminal charges in the US.

This decision comes after the High Court in Podgorica had initially sanctioned the extradition of Kwon on February 20, for alleged involvement in multiple criminal offenses.

Legal Missteps in Do Kwon Extradition Case

The Appellate Court of Montenegro cited “significant violations of the provisions of criminal procedure” under local law.

The court panel criticized the initial ruling for lacking “clear and valid reasons for decisive facts regarding the order of arrival request letter”. This move cast doubt on the procedural integrity of the extradition process.

This latest decision  adds another layer to the complex legal narrative surrounding Kwon since his arrest in Montenegro in March 2023. The case has attracted international attention, with both the United States and South Korea seeking his extradition.

Montenegro’s Appellate Court Overturns Extradition Decision 

In December 2023, the court argued the case should be remanded to the Podgorica Basic Court for a new trial.

This decision follows the High Court of Podgorica’s November 2023 ruling, which found that the legal prerequisites for Kwon’s extradition were met. As a result, Montenegro’s Minister of Justice had to make the final decision.

Terraform Labs, the entity behind the Terra blockchain, gained notoriety following the collapse of its Terra stablecoin and the LUNA token in May 2022. The United States Securities and Exchange Commission (SEC) has accused Terraform Labs and Kwon of conducting a scheme that erased approximately $40 billion from the market.

LUNC and LUNA Tokens Experience Significant Price Movements

Over the past week, both Terra Classic  (LUNC) and Terra  (LUNA) have seen gains, with price rises of 64.26% and 70.27% respectively.

Initially, LUNC traded within a tight range, oscillating between $0.000106 and $0.000142. It then surged by approximately 41.6%, peaking at $0.0001995 before stablizing over the following three days.

Subsequent market volatility led to another price rally for the token, culminating in a 40% increase. However, it faced resistance at $0.0002556 and subsequently underwent a correction, losing over 38% of its value. This, in effect nullifyied the gains from the earlier price surge. Since this correction, LUNC has shown varied trends, reflecting mixed sentiment in the market.

Meanwhile, LUNA was confined within a narrow band ranging from $0.635 to $0.6934, signaling a period of subdued price action for the cryptocurrency. With increasing market volatility, it managed to break through the resistance level, leading to a period of sideways trading.

Subsequently, the momentum waned, resulting in a pullback. Despite several unsuccessful efforts to regain strength, the crypto eventually achieved a notable increase of approximately 25% in the price. Following this, LUNA entered a period of consolidation, trading within a restricted range.

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