Montenegro recently hosted a meeting between its authorities and representatives from the US Securities and Exchange Commission (SEC) to address concerns regarding Do Kwon, the founder of Terraform Labs, responsible for the UST algorithmic stablecoin and crypto asset LUNA's fluctuations.
Led by Gurbir Grewal, Director of Investigations, the SEC delegation included Davisid Hirš, Head of Crypto Property Unit and Cyber Unit (CACU), Horhe Tenreiro, Deputy Chief CACU, Metju Greiner, Assistant Director of the Office for International Affairs (OIA), and Marli Miller, Senior Special Adviser to the OIA.
Montenegrin officials reported that the SEC provided insights into its overarching market regulation strategies during the meeting. The primary aim was to bolster mutual cooperation in safeguarding investors and overseeing financial markets.
Justice Minister Andrzej Milovic was also present at the conference, offering a detailed overview of the SEC's operational principles. He specifically emphasized the agency's vigilance in monitoring and safeguarding investors engaged in both traditional stock markets and cryptocurrency trading.
Milovic elaborated on the regulatory mechanisms available to investors and detailed the SEC's actions in various financial-related cases.
Discussions Between the SEC and Montenegrin Authorities
Significantly, the SEC's probe into Do Kwon was the primary subject of conversation. Milovich was informed of the investigation's conclusions as well as the continuing lawsuit that Kwon is facing in the US. The SEC also brought attention to the developments in Kwon's extradition case, which has been pending for several months. It is yet unclear if Kwon will be extradited to his home country of South Korea or the United States.
The Supreme Court of Montenegro declared at the beginning of April that Minister Milovic had the last say over Kwon's extradition. Originally set for extradition to South Korea in March, attorneys from Montenegro moved to contest the ruling.
In February 2023, Kwon and Terraform Labs were found guilty of civil fraud by a US jury due to the collapse of UST. Kwon's troubles escalated when he was arrested in March 2023 in Montenegro for possessing forged documents.
Meanwhile, the SEC pursued a hefty $5.3 billion fine against Terraform Labs. Legal representatives for the company, founded by Kwon, argued against the SEC's jurisdiction, contending that the agency lacked authority over crypto assets.
Upon completing his prison sentence on March 23, 2024, Kwon was transferred to a reception center for foreign nationals, where local authorities seized his passport.
Minister Milovic stressed the significance of international collaboration in combatting financial misconduct and safeguarding investors. Both sides viewed the meeting as a pivotal stride in fortifying relations between Montenegro and the United States, particularly in justice and economic policy domains.
While the specifics of the discussions were not disclosed, the meeting hinted at potential progress regarding the extradition of the disgraced crypto entrepreneur.
May 2024, Cryptoniteuae