Amid Terraform Labs’ ongoing unwind and the extradition battle involving its founder Do Kwon, a wallet linked to both entities moved $62.8 million worth of Bitcoin.

According to data from Arkham, an address associated with the beleaguered blockchain firm Terraform Labs and its detained founder, Do Kwon, transferred 1,075 Bitcoin (BTC) to a new wallet on Sept. 2.

On-chain analytics from Arkham indicated that Terraform Labs had approximately $2 million in altcoins remaining in its reserves. As part of a court agreement with the U.S. Securities and Exchange Commission (SEC), Terraform Labs is required to disband operations and close its business.

The settlement was reached more than two years after the collapse of Kwon’s Terra blockchain in mid-2022, which triggered a cascade of bankruptcies that reverberated throughout the cryptocurrency industry. Reports estimate that the Terra implosion caused more than $60 billion in damages, not including the collateral fallout from other company failures like hedge fund Three Arrows Capital and Sam Bankman-Fried’s FTX.

Meanwhile, founder Do Kwon fled shortly after the crash and spent months as an international fugitive. He was eventually apprehended in Montenegro, where authorities executed an Interpol warrant for his arrest on charges of document forgery.

Following more than six months in a Montenegrin prison, Kwon was released during an ongoing extradition dispute between the U.S. and his home country, South Korea.

A plethora of Montenegrin court orders previously authorized his removal to either country, but his extradition remained in contention at press time. If tried and convicted in South Korea, the fallen crypto tycoon could serve up to 40 years in prison for defrauding thousands of investors and misleading the public about Terra’s safety.

Do Kwon, the controversial co-founder of Terraform Labs, is facing imminent extradition to South Korea. This development comes after a series of legal battles and competing extradition requests from both South Korea and the United States.

The recent ruling by the Montenegro Appellate Court has set the stage for Kwon’s return to his home country, where he is likely to face serious charges related to the dramatic collapse of his crypto project.

Montenegro Court Ruling

The Montenegro Appellate Court has upheld a ruling that Do Kwon, co-founder of Terraform Labs, should be extradited to his home country of South Korea. This decision comes after a series of legal battles in Montenegro, where both the United States and South Korea have been vying for Kwon’s extradition.

The court has however made a ruling on Thursday rejected efforts to send Kwon to the United States, instead affirming that he should face justice in South Korea. This decision marks a crucial step in the ongoing saga surrounding the disgraced former crypto mogul, who has been at the center of controversy since the collapse of his cryptocurrency project.

According to the Podgorica-based court, there is no avenue for appeal against this decision. The ruling also upheld a previously issued fast-track extradition procedure, suggesting that the process may move forward swiftly.

In response to the court’s decision, his lawyer, Goran Rodic said that Montenegro will arrange the extradition with assistance from Interpol. Rodic expressed hope that the transfer would occur “as soon as possible,” indicating that Kwon’s legal team is prepared for the next steps in this international legal process.

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Do Kwon’s Wife Wins Asset Seizure Case in South Korea

As regards related development, the Seoul Southern District Court has ruled in favor of Do Kwon’s wife in all third-party objection lawsuits against the South Korean government’s asset seizure efforts.

This ruling took place on June 19, representing a significant victory for Kwon’s family, as the court determined that the property in question should be classified as his wife’s special property, acquired during their marriage.

The assets at the center of this case include real estate in Seoul’s Seongsu-dong and officetel sales rights in Nonhyeon-dong. These properties were initially frozen as part of a substantial $177 million asset preservation order against Kwon. However, the court has now suspended the execution of foreclosure on these properties pending final confirmation of the judgment.

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