Michaela
Bojan Božović, Montenegro’s Minister of Justice, has authorized the extradition of Do Kwon, the South Korean entrepreneur and Terraform Labs co-founder, to the United States. This ends a prolonged legal dispute related to his role in the collapse of Terraform Labs.
Both the U.S. and South Korea had been pursuing the extradition of Kwon in connection with the catastrophic $60-billion collapse of the TerraUSD and LUNA tokens. The collapse of TerraUSD in 2022 triggered a wave of financial failures. This includes the bankruptcy of major firms like Three Arrows Capital, BlockFi, and FTX.
As the fallout from the collapse unfolded, authorities worldwide began investigating Kwon’s role, while the devastating financial losses led to a significant loss of trust in the cryptocurrency market.
Subsequently, Kwon managed to evade capture despite Interpol issuing a Red Notice for his arrest. He initially sought refuge in Serbia before eventually relocating to Montenegro.
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Authorities arrested Kwon and former Terraform Labs Finance Officer Han Chang-joon at Podgorica Airport in March 2023 while attempting to board a private flight to Dubai with fraudulent Costa Rican travel documents.
Legal proceedings in Montenegro saw several reversals, with Kwon’s defense team, headed by Balkan attorney Goran Rodić, challenging each ruling. Earlier this week, Montenegro’s Constitutional Court dismissed an appeal filed by Kwon’s lawyers. This paved the way for the Justice Ministry’s decision to move forward.
“It was concluded that most of the criteria provided for by law support the extradition request of the competent authorities of the United States of America,” the Ministry of Justice stated.
The ruling also dismissed South Korea’s extradition request for Kwon. In February, Montenegro had deported Kwon’s business partner, referred to only as J.C.H., to South Korea.
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South Korea’s Relentless Pursuit of Do Kwon for Financial Law Violations
Earlier this year, Terraform Labs faced a substantial setback, agreeing to pay a $4.47 billion fine to the U.S. Securities and Exchange Commission (SEC) and ceasing its operations. Meanwhile, U.S. prosecutors are actively pursuing further criminal charges against the company, which could result in severe penalties for those involved.
South Korea remains steadfast in its pursuit of Kwon’s extradition, aiming to hold him accountable for alleged financial law violations. If convicted, Kwon could face a prison sentence of up to 40 years under South Korean law.
Read More
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MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
