Thomas Daniels
An official order to extradite Do Kwon, the troubled founder of Terraform Labs, to the United States has been signed by Montenegrin Justice Minister Bojan Božović. South Korea, which had also requested that Kwon be sent back to face charges, is subordinated to U.S. authority in this ruling.
Vijesti, a Montenegrin news outlet, published the declaration, which comes after a protracted legal dispute between South Korean and American authorities. Regarding the $60 billion collapse of the Terra-Luna cryptocurrency ecosystem, which caused massive financial losses and a cascade of bankruptcies in the crypto business, both governments have looked into Kwon.
Several overly leveraged cryptocurrency companies, including Three Arrows Capital, BlockFi, and even well-known exchange FTX, were completely destroyed by the Terra blockchain’s collapse in 2022. Kwon escaped amid the confusion, dodging police as Interpol issued a Red Notice for his capture.
After allegedly seeking safety in Serbia, Kwon entered Montenegro and tried to use fake passports to board a trip to Dubai. He and Han Chang-joon, the former CFO of Terraform Labs, were arrested by Montenegrin police at Podgorica Airport.
A months-long court battle over extradition rights began with Kwon’s arrest in Montenegro. While Kwon was still detained, prosecutors in the United States and South Korea made demands for his extradition. Initial extradition decisions were overturned by many Montenegrin courts, and Goran Rodić, Kwon’s attorney, repeatedly appealed the decisions.
Kwon’s last appeal was denied by the Montenegrin Constitutional Court on December 25, allowing Minister Božović to issue the extradition order.
Kwon is anticipated to be charged in the United States in connection with Terraform Labs’ activities, which resulted in a $4.47 billion fine—one of the biggest in SEC history. Whether Rodić will contest this most recent order is still unknown.
If Kwon is extradited later, he might face a potential 40-year prison sentence for alleged violations of local market legislation related to South Korea’s ongoing probe.
Kwon’s extradition to the United States signals heightened regulatory scrutiny across nations and represents a major milestone in holding crypto executives accountable for high-profile failures.
