Montenegro court dismisses Terra’s Do Kwon extradition appeal: report

Montenegro’s Constitutional Court rejected crypto mogul Do Kwon’s appeal, paving the way for a decision on his extradition to the United States or South Korea.

Terraform Labs founder Do Kwon lost his appeal to the Constitutional Court of Montenegro to reconsider its decision regarding his extradition, Korea JoongAng Daily has learned. The decision means Kwon’s case will now be decided by Montenegro’s justice minister, who will decide whether Kwon will be sent to the United States or South Korea for trial.

Kwon is wanted in both countries. In the US, he is facing charges related to the May 2022 collapse of his failed algorithmic stablecoin TerraUSD (USTC) and its token Luna (LUNA). He also faces legal troubles in South Korea. Kwon was arrested in Montenegro in March 2023 while trying to board a private plane to the UAE with fake documents.

Do Kwon was a prominent figure in the crypto world who created the Terra blockchain network with the promise of revolutionary algorithmic stablecoins. However, just a few months after the crypto market peaked in late 2021, it all came crashing down in May 2022, resulting in $60 billion in losses for both individual and institutional investors.

Kwon evaded authorities as the crypto industry struggled with bankruptcies. As companies like Three Arrows Capital and FTX went bankrupt due to a massive liquidity crisis, Kwon fled to Europe.
Following Interpol’s red notice and global attention, Kwon was captured in Podgorica, the capital of Montenegro.

Kwon’s company, Terraform Labs, agreed to a record $4.47 billion settlement with the U.S. Securities and Exchange Commission after a jury found him guilty of defrauding crypto investors.