Terraform Labs co-founder Do Kwon (Kwon Do-hyung) has been extradited from Montenegro (also known as the Republic of Montenegro) to the United States to face fraud charges related to TerraUSD involving $40 billion. After months of legal proceedings, the extradition was officially completed on December 31, 2024.
The statement from the Montenegrin Ministry of Justice mentioned, 'Today, at the transit point at Podgorica Airport, the South Korean citizen Kwon Do-hyung, wanted by both South Korea and the United States, was extradited by INTERPOL officials.'
Montenegrin police handed him over to U.S. authorities at Podgorica International Airport on December 31, 2024. He will stand trial in the United States for his role in one of the largest financial frauds in cryptocurrency history, which triggered stricter regulations on digital assets globally and regulatory scrutiny of mismanaged stablecoins.
Do Kwon was arrested in Montenegro in March 2023 for allegedly attempting to travel with a fake passport. While seeking repatriation to South Korea, he also consistently opposed extradition to the United States. However, Montenegrin judicial authorities repeatedly dismissed his appeals, and Minister of Justice Bojan Bozovic signed the order for extradition to the United States last week.
In May 2022, the collapse of TerraUSD and its related token Luna led to massive financial losses and regulatory scrutiny. Do Kwon faces charges including securities fraud, telecommunications fraud, and conspiracy related to the collapse of Terraform Labs cryptocurrency in both the United States and South Korea.
Interpol issued a red notice for Do Kwon in September 2022, listing him as an internationally wanted person. Nevertheless, Do Kwon successfully went 'off the grid' for months, but was ultimately arrested in Montenegro. His extradition to the United States marks a new chapter in the international community's pursuit of accountability in the cryptocurrency sector.
In fact, Montenegro held multiple rulings on whether Do Kwon must be extradited back to South Korea or the United States, and this prolonged legal battle has gone through multiple appeals, with inconsistent rulings.
In August 2024, Montenegro's appellate court upheld the high court's ruling, deciding that Terra founder Do Kwon must be extradited back to his home country of South Korea, rejecting the U.S. extradition request. However, the U.S. Department of Justice stated through a statement: 'The United States will continue to seek the extradition of Do Kwon based on relevant international and bilateral agreements and Montenegrin laws.'
By September, the Montenegrin court ruled that the Minister of Justice would make the final extradition decision. As a result, last Friday, Minister of Justice Bojan Božović officially signed the order to extradite Do Kwon to the United States.
If extradited to the United States, Do Kwon will face eight felony charges brought by U.S. prosecutors in March 2023, and his penalties in South Korea may be lighter than those in the United States.
"The dust of the struggle has settled! Terra fraud case founder Do Kwon has been extradited to the United States for trial" was first published on (Blockcast).
