The arrest of Do Kwon, founder of Terraform Labs, has triggered a jurisdictional battle between the United States and South Korea.
Montenegrin police arrested the fugitive in March using fake travel documents, and since then, US and South Korean authorities have been competing to extradite him.
US prosecutors have charged Kwon with defrauding American investors who held two tokens, LUNA and UST, designed by the founder and other employees of Terraform Labs.
The Securities and Exchange Commission had also charged Kwon with fraud and violations of securities laws. However, Kwon tried to slow down the regulators with a court motion.
On the other hand, South Korean authorities believe that Kwon should be prosecuted in his native country for more efficient investigation and to deliver justice to Terra’s victims who lost at least $40 billion last May.
Dan Sung-han, who led South Korean efforts to uncover the factors behind Terra’s collapse, stated that they had collected a large swath of evidence pertaining to the TerraUSD case overall, which could not be easily obtained in the US.
