Emily Walker
On New Year’s Eve, Montenegrin officials confirmed the extradition of Do Kwon, co-founder of Terraform Labs, to the United States. This decision followed the signing of an extradition order by the Minister of Justice, effectively ending a lengthy dispute between the US and South Korea regarding his legal proceedings.
Do Kwon Extradited to the United States
On December 31, authorities in Montenegro extradited Do Kwon to the US, where he faces trial linked to the collapse of Terraform Labs in 2022. The news was announced by the country’s interior ministry, marking the conclusion of a drawn-out legal battle.
Reports indicate that Kwon was transferred to US law enforcement and FBI agents to address charges of conspiracy to commit fraud.
Last week, Montenegro’s Minister of Justice, Bojan Božović, turned down South Korea’s extradition request and opted instead for the US, highlighting the struggle both nations faced to secure Kwon’s return to face justice after a protracted legal process.
Local news sources stated that the Department of Justice evaluated all pertinent information before deciding in favor of extraditing the Terra co-founder to the US.
As a result, it was determined that various legal criteria overwhelmingly supported the US authorities’ extradition request, prompting the Minister of Justice to authorize Do Kwon’s transfer while denying the request from South Korea.
Kwon’s legal team in Montenegro expressed dissatisfaction with the Minister’s ruling and indicated plans to challenge the decision in both the constitutional court and the European Court of Human Rights.
Timeline of Do Kwon’s Extradition in Montenegro
The South Korean entrepreneur spent more than a year and a half in custody in Montenegro. In March 2023, he was arrested alongside former Terraform Labs finance officer Han Chang-joon for trying to travel with false documents at the airport in Podgorica.
Prior to his arrest, Kwon managed to evade capture for several months, fleeing from his home country and Singapore after Terraform Labs declared bankruptcy. This failure was among the most significant in crypto history, erasing approximately $50 billion in value from its two main assets, TerraUSD (UST) and Luna (LUNA), within a week, as noted in a report by the Federal Reserve Board.
Do Kwon received a four-month prison sentence in Montenegro, which was later extended by two months upon requests from the US and South Korea. After his imprisonment, he was taken to an immigration center while awaiting a decision from Montenegro’s High Court about the extradition requests.