South Korean crypto entrepreneur Do Kwon, known for his involvement in a $40 billion financial disaster, is set to be extradited to the United States, according to Agence France Presse. Montenegro's Minister of Justice, Bojan Bozovic, authorized the extradition on Friday, marking a significant development in the case.
Kwon's arrest occurred in 2023 when he was caught in Montenegro attempting to travel to Dubai using a forged passport. The extradition process has faced multiple delays, but the Balkan country has now decided to send Kwon to the U.S., citing legal criteria favoring this decision over South Korea.
The collapse of the Terra network in May 2022 triggered losses of approximately $40 billion for investors. The SEC later accused Kwon and Terraform Labs of misleading investors about the TerraUSD stablecoin, filing civil fraud charges in February 2023. A jury ruled against Terraform Labs and Kwon in April, aligning with the SEC’s claims.
In September, Terraform Labs received approval for its bankruptcy plan. Meanwhile, Kwon faces additional criminal charges in both the U.S. and South Korea. Despite diplomatic tensions between the two nations over his extradition, Montenegro prioritized the U.S. due to its stricter penalties for financial crimes, making this outcome less favorable for Kwon.
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