Montenegro extradited Do Kwon, co-founder of Terraform Labs, to the United States after a year-long legal battle with extradition requests from South Korea and the U.S., resolved by Montenegro's Ministry of Justice.
The 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, stating that Kwon would face charges in the United States. This decision followed Justice Minister Bojan Božović's rejection of South Korea’s request. Božović emphasized Montenegro's zero-tolerance stance on fraud while supporting legitimate technological innovations.
Legal Battles and the Terra/Luna Collapse
Do Kwon's troubles began with the catastrophic collapse of the TerraUSD stablecoin and the Luna token in May 2022. TerraUSD, founded on an algorithmic mechanism, collapsed, taking down Luna and wiping out $33.9 billion in market value. The implosion led to global crisis warnings, and authorities charged Kwon with fraud and market manipulation.
Arrest and Prolonged Legal Saga
After months in hiding, Kwon was arrested in Montenegro in March 2023 for using falsified passports. His arrest added document forgery to his legal issues. For over a year, Montenegrin courts deliberated the case, while Kwon's legal team filed multiple appeals to delay the process. Ultimately, Montenegro prioritized the U.S. request based on comprehensive criteria from the Department of Justice. In the U.S., Kwon faces eight felony charges. The Securities and Exchange Commission (SEC) filed civil charges against Kwon and Terraform Labs. In April 2024, they were found guilty of fraud and fined $4.5 billion.
Do Kwon's extradition to the U.S. marks a significant step in the international fight against financial crimes in cryptocurrency, highlighting the importance of global cooperation in such cases.
