Montenegro’s Supreme Court has reportedly ruled that Do Kwon, co-founder of Terraform Labs, qualifies for extradition to both South Korea and the United States, leaving the final decision to the Minister of Justice. Authorities are expected to make an official announcement by Sunday, October 20.
Justice Minister Bojan Božović informed local media that a decision regarding Kwon’s extradition has been reached, and he plans to sign the official documentation by the end of this week.
Legal Issues Surrounding Do Kwon
Do Kwon was arrested in Montenegro in March 2023 while attempting to leave the country with what authorities described as fake passports. He gained notoriety after the collapse of Terraform’s TerraUSD (UST) and Luna cryptocurrencies, which resulted in approximately $40 billion in losses.
In the US, prosecutors have charged Kwon with an eight-count indictment, including allegations of securities fraud, wire fraud, commodities fraud, and conspiracy for allegedly misleading investors about Terra’s blockchain stability. South Korea has also pursued legal action for similar financial crimes, while Singapore has shown interest in the case, although specific allegations there remain unclear.
Following a request from South Korean prosecutors, Interpol issued a Red Notice for Kwon in September 2022.
Extradition Process Update
On September 19, Montenegro’s Supreme Court ruled that Kwon meets the criteria for extradition to both South Korea and the US, giving the Minister of Justice the authority to finalize the extradition order. Minister Božović noted that the process might have been simpler if the court had selected one destination, but he is prepared to act on the decision nonetheless.