Montenegro allows for extradition of former Terraform CEO to South Korea

Montenegro’s Court of Appeals upheld the decision to extradite Do Kwon to South Korea on August 1, rejecting the US extradition request and reportedly making a ‘final’ decision.

South Korean national Kwon was involved in a $40 billion crypto scam linked to the collapse of Terra cryptocurrencies. Kwon’s legal saga began with the collapse of TerraUSD and Luna in May 2022, triggering significant investor losses.

Timeline of Do Kwon’s arrest

He was arrested in Montenegro in March 2023 while trying to travel with false documents. He was sentenced to four months in prison, during which time multiple extradition requests from the US and South Korea emerged.

Montenegrin courts have made several decisions regarding Kwon’s extradition, initially in favor of the United States, but the decision was later overturned and ruled in favor of South Korea, due to South Korea’s previous request and significant allegations against Kwon, such as fraud and bribery.

In early March 2024, Montenegrin authorities even approved the deportation of Terraform Labs’ co-founder to South Korea.

Kwon’s legal troubles extend beyond his extradition battles. In April 2024, a New York jury found him and his company, Terraform Labs, liable for civil fraud, and a $4.5 billion settlement was reached with the SEC. Despite the settlement, U.S. authorities continue to pursue criminal charges.

While Kwon awaits extradition to a foreigners’ shelter near Podgorica, time will tell if there will be any further appeals or decisions.

RadioFreeEurope’s reporting was instrumental in bringing this news to light.