Lee Yeon-woo is a financial journalist at The Korea Times. Her wide range of reporting includes policies, macroeconomics, stock market, companies and even crypto. She is passionate about connecting the dots in Korean finance and making it easier for foreign nationals to understand. Based on her previous experience as a national reporter, she also has a keen interest in social issues within the sector, including gender equality and ESG. Your tips and insights are always appreciated. You can send them to yanu@koreatimes.co.kr.
Do Kwon's extradition to Korea is not welcomed, even by Koreans
Montenegrin police officers escort Do Kwon, center, a Korean cryptocurrency entrepreneur behind the collapse of TerraUSD, at a court in Montenegro, March 23. An appellate court of Montenegro upheld a lower court's decision, Thursday (local time), clearing the path for Kwon's extradition to Korea. AFP-Yonhap
By Lee Yeon-woo
Montenegro court upholds decision to extradite Do Kwon to Korea
After months of back and forth, the appellate court of Montenegro upheld the lower court's decisions to extradite Do Kwon to Korea, Thursday (local time). The rising possibility of Kwon facing legal penalties at his birth nation has led to significant disappointment among victims and crypto investors, even in Korea.
"In Korea, the maximum sentence for economic crimes is about 40 years. However, in the U.S., Kwon is even 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," an office worker surnamed Kim, 35, told The Korea Times.
Like Kim, many Koreans, even victims, want Kwon to face punishment in the U.S.
"I always hope, but don't have a strong belief that Kwon will face strict punishment in Korea," said Shim Jong-chan, a self-employed 28-year-old. "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."
"I don't want to feed him in prison with my tax," one user wrote in an online crypto community. "What a waste of money."
This, however, contradicts the legal interests, as extradition to Korea could guarantee them at least a small amount of financial compensation. 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. Thus, bringing Kwon to Korea is seen as the best way to ensure the recovery of losses for Korean victims.
They are skeptical due to a lack of trust in the country's legal system, along with low expectations of retrieving compensation from Kwon, industry officials said.
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"The victims do not expect any realistic compensation from the cryptocurrency fraudsters," the 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."
Around 280,000 people are known to have invested in the controversial coin from Korea. The total losses are estimated to be about $40 billion worldwide.
The backlash arose after the Montenegrin appellate court decided to uphold the lower court's decision to extradite Kwon to Korea.
The court stated 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.
It also said that neither the prosecution nor the defense appealed the high court's decision, indicating that the ruling is legally binding.
Unless there are any additional unforeseen variables, Kwon is expected to soon undergo the process of being extradited to Korea. The exact date has not been set yet.
Kwon flew to Singapore in April 2022 before his TerraUSD collapsed and then disappeared from public view. He was caught at a Montenegrin airport in March while trying to use a fake Costa Rican passport.
At that point, his legal saga began. The local court's first-instance ruling decided on extradition to the U.S. Following Kwon's appeal, the high court in Podgorica decided on extradition to Korea.
However, Montenegrin Justice Minister Andrej Milovi? intervened to nullify Kwon's extradition to Korea, causing the case to return to square one. But he recently stepped down in a cabinet reshuffle, raising speculation that the resignation prompted the latest court decision.