Terraform Labs co-founder Do Kwon (Kwon Do-hyung) has been extradited from Montenegro to the United States to face fraud charges related to TerraUSD, involving $40 billion. After months of legal procedures, this extradition was officially completed on December 31, 2024.
The statement from the Montenegro Ministry of Justice mentioned, 'Today, at the transit point at Podgorica Airport, South Korean citizen Kwon Do-hyung, wanted by both South Korea and the United States, was extradited by Interpol officials.'
Montenegro police handed him over to U.S. authorities at Podgorica International Airport on December 31, 2024. He will stand trial in the U.S. for his role in one of the largest financial frauds in cryptocurrency history, which triggered stricter regulations on digital assets globally and scrutiny of mismanaged stablecoins.
Do Kwon was arrested in Montenegro in March 2023 on suspicion of attempting to travel with a fake passport. While seeking repatriation to South Korea, he also continuously opposed extradition to the U.S. However, Montenegro's judiciary repeatedly rejected his appeals, and Justice Minister Bojan Bozovic signed the order for extradition to the U.S. last week.
In May 2022, the collapse of TerraUSD and its associated token Luna led to massive financial losses and regulatory scrutiny. Do Kwon faces charges of securities fraud, telecommunications fraud, and conspiracy related to the collapse of Terraform Labs' cryptocurrency in both the U.S. and South Korea.
Interpol issued a red notice for Do Kwon in September 2022, listing him as an international fugitive. Nevertheless, Do Kwon successfully 'went into hiding' for months, but was ultimately arrested in Montenegro. His extradition to the U.S. marks a new chapter in the international community's pursuit of accountability in the cryptocurrency sector.
In fact, Montenegro has made multiple rulings on whether Do Kwon should be extradited back to South Korea or the U.S., and this prolonged legal battle has seen numerous appeals with inconsistent rulings.
In August 2024, Montenegro's appellate court upheld the ruling of the High Court, stating 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 in accordance with relevant international and bilateral agreements as well as Montenegrin law.'
By September, the Montenegro court ruled that the Minister of Justice would make the final extradition decision. As a result, last Friday, Justice Minister 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, while the penalties he faces in South Korea may be lighter than those in the U.S.
"The dust has settled! Terra fraud case founder Do Kwon has been extradited to the U.S. for trial" this article was first published on (Blockcast).
