Montenegro has officially extradited Do Kwon, co-founder of Terraform Labs, to the United States. This decision follows a year-long legal battle involving competing extradition requests from South Korea and the U.S., ultimately resolved by Montenegro's Justice Ministry.
The Extradition Details
On December 31, 2024, Montenegrin police handed over Do Kwon to FBI officers at Podgorica Airport. Prime Minister Milojko Spajić confirmed the transfer. This decision comes after Justice Minister Bojan Božović rejected South Korea's extradition request. Božović emphasized Montenegro’s commitment to international justice and zero-tolerance policy on fraud.
Legal Battles and the Terra/Luna Collapse
Do Kwon's troubles began with the collapse of the TerraUSD stablecoin and its sister token Luna in May 2022. TerraUSD was promoted as a revolutionary financial tool, using an algorithmic mechanism critics considered unstable. Its value plunge led to the connected Luna token's collapse, resulting in $33.9 billion in market value losses. Both the U.S. and South Korea charged Kwon with fraud and market manipulation.
Arrest and Prolonged Legal Saga
After months in hiding, Kwon was arrested in Montenegro in March 2023 while attempting to travel using falsified Costa Rican and Belgian passports. His arrest added document forgery to his list of legal issues. Montenegrin courts deliberated for over a year, with Kwon's legal team filing multiple appeals. Ultimately, Montenegro prioritized the U.S. request. In the U.S., Kwon faces eight felony charges, including securities fraud and conspiracy.
Do Kwon's extradition to the U.S. underscores the serious legal repercussions for cryptocurrency project founders involved in financial scandals.
