Report: Montenegro Agrees to Extradite Terraform Labs’ Do Kwon to the US

Report: Montenegro Agrees to Extradite Terraform Labs’ Do Kwon to the US

Montenegro has greenlit the extradition of Terraform Labs co-founder Do Kwon to the United States, possibly settling a tug-of-war between the U.S. and South Korea, according to Bloomberg.

Do Kwon’s U.S. Extradition Approved Amid Fraud Charges

Montenegro’s Justice Ministry announced the decision, stating that “most criteria envisaged by the law are in favor of the extradition demands from the institutions of the United States of America.” U.S. Justice Minister Bojan Bozovic confirmed the approval on Friday, though Bloomberg reporters Misha Savic and Jasmina Kuzmanovic noted that the exact date for Do Kwon’s extradition remains undecided.

Kwon, the co-founder of Terraform Labs, is infamous for his role in the collapse of the $40 billion TerraUSD (UST) stablecoin in 2022. Arrested in Montenegro last year for attempting to use a fake passport, Kwon faces charges in both New York and Seoul. His attorney, Goran Rodic, has stated that Kwon prefers extradition to South Korea but has not commented on Montenegro’s decision.

The Manhattan U.S. attorney’s office, which charged Kwon with fraud in 2023, has yet to issue a statement on the development. Previously, Montenegrin legal authorities had supported South Korea’s extradition request, suggesting further legal proceedings might delay Kwon’s extradition to the U.S.

In April 2024, Terraform Labs and Kwon faced a Securities and Exchange Commission (SEC) judgment deeming them liable for fraud. The case resulted in the company paying $4.5 billion in penalties, further exacerbating their legal troubles.

The situation remains fluid, with the timeline for Kwon’s extradition to the U.S. still unclear. Observers anticipate more developments as legal and diplomatic negotiations unfold.