Following months of legal proceedings, the United States extradited Do Kwon, co-founder of Terraform Labs, from Montenegro. Montenegrin Prime Minister Milojko Spajić confirmed Kwon’s transfer, claiming he is currently in US custody and will face criminal proceedings.
Montenegrin Justice Minister Bojan Božović authorized the US request for Kwon’s extradition, overruling a competing South Korean appeal. Both countries attempted to prosecute Kwon for his role in the 2022 collapse of the Terra/Luna cryptocurrency ecosystem, which resulted in massive financial losses.
Montenegro’s Prime Minister, Spajić, stressed the country’s commitment to international justice. He stated that the country promotes technological innovation but does not tolerate fraudulent operations.
Kwon’s arrest in Montenegro in 2023 signaled the start of a complicated court case. Apprehended for attempting to flee to Dubai on a false Costa Rican passport, he received a four-month prison sentence for document fraud. Following his release, Kwon faced nearly a year of deliberation in Montenegrin courts over whether to extradite him to the United States or South Korea. Repeated appeals from Kwon’s legal team delayed the procedure.
In the United States, Kwon is facing eight felony allegations, including wire fraud, commodities fraud, and conspiracy to influence markets. The United States Securities and Exchange Commission (SEC) filed a civil action in April 2024, finding him and Terraform Labs guilty of fraud and imposing $4.5 billion in penalties.
Kwon’s extradition marks a critical step in holding him accountable for the Terra/Luna crash, which led to widespread losses in the cryptocurrency market. While it remains unclear when he will appear in court, this development underscores the international effort to address financial crimes in the rapidly evolving crypto space.
