Montenegro’s Minister of Justice officially signed the order to have Terraform Labs co-founder Do Kwon handed over to U.S. authorities to face charges in New York. The decision to extradite Kwon to the US rather than his native South Korea comes after Montenegro’s Constitutional Court dismissed the disgraced Terra founder’s appeal.
Do Kwon To Face Trial In the US
One of the most notorious figures in the crypto industry is set to be deported to the United States.
The Montenegrin Minister of Justice, Bojan Božović, has approved the extradition of bombastic South Korean entrepreneur Do Kwon, the Ministry announced on Friday.
“It was concluded that most of the criteria provided by law support the request for extradition by the competent authorities of the United States of America,” a translated statement from Božović reportedly said, according to news publication Vijesti.
This follows a decision from the Constitutional Court of Montenegro earlier this week, which rejected Kwon’s appeal against a previous Supreme Court ruling. In September, the Supreme Court nullified Kwon’s deportation to South Korea and indicated that the Balkan nation’s Minister of Justice would make the final extradition decision.
Extradition Nightmare
Kwon founded Terraform Labs, popularly known for its algorithmic stablecoin TerraUSD (UST) and its sister token LUNA. Both assets imploded in May 2022, wiping out over $40 billion in investor wealth overnight and triggering a chain of bankruptcies throughout the cryptosphere, before its founder went on a run from law enforcement around the world.
He was arrested in March 2023 in Montenegro while attempting to travel to Dubai using a fake passport. Since being released from jail this March, Kwon has faced lengthy legal proceedings, with courts deciding between dueling demands to send him to the US or South Korea.
The US has been particularly vocal in pursuing his extradition as it seeks to hold him accountable for his role in the shambolic collapse of the Terra ecosystem. Notably, in June, a New York jury found Terraform Labs and Kwon liable for fraud in a lawsuit brought by the Securities and Exchange Commission.
The verdict included six charges, including intentionally misleading investors, misrepresentations about the success and stability of Terra, and “reckless” mishandling of customer money. In June, the controversial company and its once-fugitive founder were fined a whopping $4.5 billion by the SEC after reaching a “settlement in principle”.
While it’s not the outcome Kwon was hoping for, signing the order to have him transferred to the United States should hopefully conclude the multi-year legal battle.