Montenegro’s Constitutional Court recently ruled against crypto mogul Do Kwon’s appeal, leading to a decision regarding his extradition to either the U.S. or South Korea. Kwon, the founder of Terraform Labs, had filed an appeal to reconsider the court’s decision on his extradition, but the appeal was rejected. Now, Montenegro’s justice minister will decide whether Kwon will be sent to the U.S. or South Korea for trial, as he is wanted in both countries.
In the U.S., Kwon is facing charges related to the collapse of his algorithmic stablecoin TerraUSD (USTC) and token Luna (LUNA) in May 2022. Meanwhile, in South Korea, he is also dealing with legal issues. Kwon was arrested in Montenegro in March 2023 while attempting to board a private flight to the UAE using fake documents. Kwon was a well-known figure in the crypto world for creating the Terra blockchain network, which promised revolutionary algorithmic stablecoins. However, the project failed in May 2022, resulting in significant losses for investors.
Following the collapse of the Terra project, Kwon fled from authorities as the crypto industry faced bankruptcies. Companies such as Three Arrows Capital and FTX suffered major liquidity crises, and Kwon escaped to Europe. Eventually, after an Interpol red notice and global attention, Kwon was apprehended in Montenegro’s capital, Podgorica. Kwon’s company, Terraform Labs, reached a $4.47 billion settlement with the U.S. Securities and Exchange Commission after being found guilty of defrauding crypto investors.
Overall, the rejection of Do Kwon’s appeal by Montenegro’s Constitutional Court has set the stage for his extradition to face legal proceedings in either the U.S. or South Korea. Kwon’s troubles began when his Terra project collapsed, causing significant financial losses for investors. After fleeing from authorities, Kwon was apprehended in Montenegro and is now awaiting a decision on his extradition. With legal issues in both the U.S. and South Korea, Kwon’s future remains uncertain as the justice minister in Montenegro prepares to determine his fate.
