Montenegro’s Constitutional Court has denied an appeal from crypto entrepreneur Do Kwon, setting the stage for a final decision on his extradition to either the United States or South Korea.
Do Kwon, the founder of Terraform Labs, saw his appeal rejected by Montenegro’s Constitutional Court, which could now allow the country’s justice minister to decide whether he will be extradited to the U.S. or South Korea for prosecution. This critical ruling signifies a pivotal moment in Kwon’s ongoing legal troubles.
Kwon is under investigation in both nations. In the United States, he faces allegations linked to the collapse of his algorithmic stablecoin TerraUSD (USTC) and its sister token Luna (LUNA) in May 2022. Additionally, South Korea has ongoing legal challenges against him. Kwon was apprehended in Montenegro in March 2023 while attempting to board a private flight to the UAE using fraudulent documentation.
Once a leading figure in the cryptocurrency sector, Kwon was celebrated for his development of the Terra blockchain, which promised to innovate stablecoin technology. However, the collapse of Terra in May 2022 resulted in a staggering $60 billion loss for investors, both retail and institutional, following an all-time high in the market in late 2021.
As the cryptocurrency landscape faced significant turmoil with high-profile bankruptcies, Kwon evaded capture and fled to Europe. After an Interpol red notice and intensified scrutiny from global authorities, he was ultimately arrested in Podgorica, Montenegro.
Moreover, Kwon’s firm, Terraform Labs, has recently agreed to a record settlement of $4.47 billion with U.S. authorities, after being found liable for defrauding investors in the crypto space.
