Montenegro Court Rejects Do Kwon’s Extradition Appeal: What’s Next?

Montenegro’s Constitutional Court has officially rejected an appeal from Do Kwon, the controversial founder of Terraform Labs, clearing the way for his potential extradition. The decision now places the responsibility on Montenegro’s justice minister, who must decide whether Kwon will be sent to the United States or South Korea to face trial.

Kwon, once a prominent figure in the cryptocurrency world, is wanted in both countries following the catastrophic collapse of his algorithmic stablecoin, TerraUSD (USTC), and its companion token, Luna (LUNA), in May 2022. The crash wiped out $60 billion in investor funds, devastating both individual and institutional stakeholders.

Kwon’s legal troubles began piling up after the Terra ecosystem imploded, with U.S. authorities accusing him of fraud and South Korea issuing similar charges. He fled the spotlight, eventually ending up in Europe, despite being the subject of an Interpol red notice. Kwon was arrested in March 2023 in Montenegro’s capital, Podgorica, while trying to board a private flight to the UAE with fake documents.

Before his downfall, Kwon was regarded as a visionary in the crypto space, promoting Terra as a groundbreaking blockchain platform built around algorithmic stablecoins. However, the Terra collapse marked the beginning of a broader crisis in the cryptocurrency market, which also saw major companies like FTX and Three Arrows Capital go bankrupt.

Adding to the drama, Kwon’s company, Terraform Labs, recently settled with the U.S. Securities and Exchange Commission (SEC) for a staggering $4.47 billion after being found guilty of defrauding crypto investors.

As the crypto world watches closely, the decision on Kwon’s extradition will have significant implications—not just for him, but for the broader industry still grappling with the fallout of Terra’s collapse.

Further Reading:

• Terraform Labs to dissolve following $4.47 billion SEC settlement.

• Can LUNC recover? Terra Luna burns 1.34 billion tokens.