Do Kwon, co-founder of Terraform Labs, has been extradited from Montenegro to the United States. This decision resolves a prolonged extradition conflict between South Korea and the United States, concluded by Montenegro's Ministry of Justice.
The Extradition Details
On December 31, 2024, Montenegrin police handed Do Kwon over to FBI officers at the Podgorica Airport. Prime Minister Milojko Spajić confirmed the transfer. This decision came after Justice Minister Bojan Božović rejected South Korea’s extradition request. Božović emphasized Montenegro's zero-tolerance stance on fraud while supporting innovation.
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. Promoted as a groundbreaking financial tool, TerraUSD's algorithmic mechanism was unstable. The collapse led to a loss of billions in market value. U.S. and South Korean authorities charged him with fraud and market manipulation.
Arrest and Prolonged Legal Saga
After months in hiding, Kwon was arrested in Montenegro in March 2023. The legal proceedings lasted over a year, with his legal team filing multiple appeals. Ultimately, Montenegro prioritized the U.S. extradition request.
Do Kwon will now face trial in the U.S. on eight felony charges, including securities fraud. The SEC has filed civil charges against him and Terraform Labs.
