Montenegro Clears Way for Do Kwon’s Extradition, Likely to the US

Montenegro Constitutional Court has unanimously denied an appeal by Terraform Labs co-founder Do Kwon against his extradition verdict, according to a December 25 report by Korea JoongAng Daily.

This decision allows Montenegro’s Justice Minister to finalize Kwon’s extradition destination, with the United States emerging as the likely choice due to the ministry’s established stance.

Kwon, also sought by South Korea, faces legal charges stemming from the collapse of TerraUSD (UST) and Luna tokens in May 2022.

Apprehended in March 2023 while attempting to travel through Montenegro with a fake passport, Kwon’s legal challenges have drawn international attention.

The US, determined to hold him accountable for Terraform Labs’ failed stablecoin ecosystem, fined Kwon $4.5 billion in June following a civil lawsuit filed by the SEC.

South Korea has similarly pushed for his extradition, citing the global impact of the Terra collapse. Earlier rulings prioritized South Korea’s request over the US, but Montenegro’s decision may shift the balance.

Former Justice Minister Andrej Milović recently alleged that Prime Minister Milojko Spajić leveraged Kwon’s extradition for a 30-year airport concession deal with South Korea, adding further complexity to the case.

Do Kwon was a key figure in the crypto space, known for creating the Terra blockchain network and introducing algorithmic stablecoins touted as groundbreaking. However, the project imploded in May 2022, just months after the crypto market’s late 2021 peak, wiping out $60 billion and leaving both retail and institutional investors reeling.