It seems to be a never-ending story about Terraform Labs founder and former crypto mogul Do Kwon and his extradition from Montenegro. On August 8, 2024, a Montenegrin Supreme Court ruling postponed Do Kwon‘s extradition to South Korea. The court decided to wait for further clarifications from the Supreme State Prosecutor’s Office regarding the legal conditions for extradition.
- Previous Court Rulings: Earlier, on August 1, 2024, the Montenegro Appellate Court had ruled that Kwon should be extradited to South Korea, rejecting a request from the United States. This decision was part of a series of conflicting rulings as both countries sought his extradition following his arrest in March 2023 for using a fake passport while attempting to flee to Dubai.
- Legal Background: Kwon is wanted for his alleged involvement in a massive fraud scheme linked to the collapse of the TerraUSD cryptocurrency, which resulted in losses exceeding $40 billion. He faces serious charges in both South Korea and the United States, including capital market violations and securities fraud. His business partner has already been extradited to South Korea. In June 2024, the U.S. SEC announced that Terraform Labs and Do Kwon agreed to pay more than $4.5 billion to settle the fraud case. In September, Interpol, the international police organization, issued a “red notice” calling for his arrest, acting at the request of the South Koreans.
- Current Status: Following the latest postponement, the case will return to the Higher Court in Montenegro, which will evaluate the legal conditions for extradition to both countries. The final decision will rest with Montenegro’s Justice Minister, adding another layer of complexity to Kwon’s legal situation.
Read our reports on Do Kwon here.
This ongoing saga reflects the broader implications of cryptocurrency regulation and the legal challenges faced by figures in the industry.
