Do Kwon to be Extradited to South Korea, Montenegro Rejects U.S. Request

Extradition Decision Ends Months of Legal Battles Over Terra Co-Founder's Fate

Do Kwon, the co-founder of Terraform Labs, will be extradited to South Korea following a decision by Montenegro's court of appeals. Kwon has been in custody in Montenegro since March 2023 after being arrested for using a fake passport while en route to Dubai. Both South Korea and the U.S. sought his extradition due to charges related to the $40 billion collapse of Terra/LUNA in 2022. The decision confirms an earlier ruling to extradite Kwon to South Korea, which had submitted its request first.

Extradition Proceedings

The Appellate Court of Montenegro upheld the decision of the High Court of Podgorica, rejecting the U.S.'s competing request for extradition. The final decision will be made by Montenegro's minister of justice. Kwon’s case had seen multiple legal twists, with various courts overturning prior decisions.

Background of the Case

Kwon fled following the Terra/LUNA collapse, prompting Interpol to issue a red notice in September 2022. Arrested in Montenegro for using a fake Costa Rican passport, Kwon was initially sentenced to four months in prison. He remained jailed until March of this year when he was released on bail but without his real passport, which was confiscated.

Ongoing Legal and Financial Repercussions

The Terra/LUNA debacle was a precursor to a series of major crypto company collapses in 2022, including FTX. The extradition ruling could have significant implications for Kwon and Terraform Labs, with both South Korea and the U.S. eager to hold him accountable for his alleged role in the financial disaster.

What’s Next?

No specific date has been set for Kwon’s extradition. However, the decision by Montenegro’s court is a critical step in the international efforts to address the fallout from one of the largest financial scandals in the cryptocurrency sector.

photo source / Blockonome