Montenegro extradited South Korean cryptocurrency entrepreneur Do Kwon to the United States on Tuesday, following a decision by Montenegro’s justice ministry. Kwon, the founder of Terraform Labs, faces charges of conspiracy to commit fraud in connection with his firm’s collapse, which wiped out $40 billion in investments and destabilized global cryptocurrency markets.
Arrested in March 2023 at Podgorica airport with a fake Costa Rican passport, Kwon had been on the run for months after fleeing South Korea prior to the May 2022 collapse of Terraform’s stablecoin, TerraUSD, and its sister token, Luna. Described as a “genius” in early media reports, Kwon is now accused of orchestrating what experts call a pyramid scheme that devastated investors.
Montenegro’s interior ministry confirmed Kwon’s transfer to FBI custody, emphasizing the country’s commitment to international justice. Prime Minister Milojko Spajic lauded the extradition as a testament to the rule of law.
Kwon’s lawyers criticized the decision, citing European conventions on extradition, and plan to appeal to Montenegro’s constitutional court and the European Court of Human Rights. Meanwhile, Terraform Labs has filed for bankruptcy protection in the US, aiming to address legal claims while continuing operations.
This marks a pivotal moment in regulatory efforts to address growing concerns around cryptocurrency fraud.
