Montenegro has agreed to send Do Kwon, the founder of Terraform Labs, to the United States, as decided by the Montenegrin Justice Minister Bojan Božović.
The Constitutional Court of Montenegro has turned down Kwon’s appeal against his extradition, which he claimed was based on unfair legal views. The court’s decision ended the legal process of his extradition, putting the final choice in the hands of the Minister of Justice.
Do Kwon has faced attention from U.S. and South Korean authorities since the major failure of his cryptocurrency projects, TerraUSD and Luna, in May 2022. This event caused a huge loss of more than $40 billion in the crypto market and led to a wider financial crisis that impacted many companies, including crypto lending firms. After the collapse, Kwon avoided the police for a while before getting arrested in Montenegro in March 2023, starting the extradition process.
In June 2024, Terraform Labs settled for $4.5 billion with the U.S. Securities and Exchange Commission, and Kwon announced that the project would stop operations. Kwon’s extradition to the U.S. is an important step in his legal issues, as he is dealing with serious charges of fraud and financial misconduct.
