Montenegro Approves Extradition of Terraform Labs Co-Founder Do Kwon to the US
Montenegro’s Minister of Justice, Bojan Božović, has recently signed an order to extradite Terraform Labs co-founder Do Kwon to the US. The decision comes after Montenegro’s Supreme Court determined that all legal conditions for Kwon’s extradition had been met.
Following the ruling, the Ministry of Justice evaluated the competing extradition requests from the US and South Korea and concluded that the US request met the most legal criteria. Minister Božović subsequently signed the decree approving Kwon’s extradition to the US, denying South Korea’s request.
In a statement, the Justice Ministry outlined its reasoning for the decision, citing factors such as the severity of the alleged crimes, the location of their commission, the timing of the requests, and Kwon’s citizenship. This decision follows months of legal deliberation and competing extradition requests.
Potentially the End of a Lengthy Legal Battle
Kwon faces significant legal challenges in the US, as the US Securities and Exchange Commission (SEC) filed a lawsuit against him and Terraform Labs in February 2023. The lawsuit alleges that Kwon and Terraform Labs misled investors about the stability of TerraUSD and the use of Terraform’s blockchain technology in a popular Korean mobile payment app.
In March of the same year, authorities apprehended Kwon while he was attempting to travel from Montenegro using a counterfeit passport. He has been charged with various offenses related to the collapse of TerraUSD and Luna tokens, which caused approximately $40 billion in losses. Additionally, in June, a US court fined Kwon $4.5 billion after he failed to settle a civil lawsuit with the SEC.
Meanwhile, South Korea has also expressed interest in prosecuting Kwon. The Appellate Court upheld a decision to prioritize South Korea’s extradition request over the US. Former Montenegrin Justice Minister Andrej Milović has raised concerns about potential ulterior motives behind the extradition, suggesting that Prime Minister Milojko Spajić may have used it as leverage for a concession related to the country’s airports with South Korea.
It remains to be seen how Kwon’s extradition to the US will unfold and what legal challenges he will face in the future.