The Montenegrin authorities have extradited Do Kwon, co-founder of Terraform Labs, to the US following a year-long legal dispute with South Korea and the US.
Extradition Details
On December 31, 2024, Montenegrin police handed Do Kwon over to FBI officers at Podgorica Airport. Prime Minister Milojko Spajić confirmed the transfer via social media, stating that Kwon would face charges in the United States. The extradition request from South Korea was previously rejected by Montenegro's Justice Minister Bojan Božović, who emphasized the country's commitment to international justice.
Legal Battles and Terra/Luna Collapse
Do Kwon's legal troubles began with the collapse of the TerraUSD stablecoin and its associated token, Luna, in May 2022. TerraUSD was marketed as a groundbreaking financial tool that used an algorithmic mechanism deemed unstable by critics. As its value fell, the interconnected Luna token also plummeted, wiping out $33.9 billion in market value. This event triggered a global outcry and prompted authorities in both the US and South Korea to charge Kwon with fraud and market manipulation.
Arrest and Prolonged Legal Saga
After months on the run, Do Kwon was arrested in Montenegro in March 2023 while attempting to use falsified Costa Rican and Belgian passports. This added document forgery to his list of legal issues. Montenegrin courts deliberated on the case for over a year, ultimately prioritizing the US request due to its complexity and thoroughness. In the US, Kwon faces eight felony charges, including securities fraud, wire fraud, and conspiracy. The SEC has also filed civil charges against Kwon and Terraform Labs.
The prolonged legal saga has concluded with Do Kwon's extradition to the US, where he faces multiple criminal charges, highlighting the international community's strict stance on financial misconduct in the crypto industry.
