Montenegro’s Minister of Justice, Bojan Božović, has officially signed an order to extradite Do Kwon, the founder of Terraform Labs, to the United States. This decision comes amidst legal battles between the United States and South Korea, both of which sought Kwon’s extradition following the $60 billion collapse of the Terra-Luna blockchain.
In 2022, the implosion of Terra blockchain caused significant disruptions in the cryptocurrency market, leading to the downfall of several crypto enterprises, including Three Arrows Capital, BlockFi, and FTX. In the wake of these events, Do Kwon reportedly evaded authorities until his arrest by Montenegrin officials at Podgorica airport, where he tried to board a private plane using forged documents.
Interpol had issued a Red Notice for Kwon, who had been residing in Serbia before attempting to transit through Montenegro. His brief arrest, alongside Han Chang-joon, the former finance officer of Terraform Labs, led to a complex legal tussle over extradition rights that saw repeated court interventions. On December 25, Montenegro’s Constitutional Court rejected Kwon’s latest appeal against extradition.
With Terraform Labs agreeing to dissolve following a historic $4.47 billion settlement with the U.S. Securities and Exchange Commission, Kwon faces likely prosecution in the U.S. on charges linked to the dramatic collapse of Terra. Meanwhile, South Korean authorities continue their investigation, with potential penalties including a 40-year prison sentence if convicted of violating local market regulations. It remains uncertain whether Goran Rodić, Kwon’s legal representative, will contest the latest extradition order.
