Montenegro Rejects Do Kwon's Appeal, Paving Way for Extradition Decision

Do Kwon, founder of Terraform Labs, has lost his appeal in Montenegro's Constitutional Court, which he had filed to reconsider its decision on his extradition

Montenegro’s justice minister will decide whether crypto mogul Do Kwon, who is wanted in both the U.S. and South Korea, will be extradited to either country, following a failed appeal by Kwon.

According to Korea JoongAng Daily, Do Kwon, the founder of Terraform Labs, has lost his appeal in Montenegro’s Constitutional Court, which he filed to have the court reconsider its decision on his extradition. The ruling now paves the way for Montenegro’s justice minister to decide whether Kwon will be sent to the United States or South Korea for trial.

Kwon is facing charges in both countries. In the U.S., he is wanted for his role in the spectacular crash of his algorithmic stablecoin TerraUSD (USTC) and token Luna (LUNA) in May 2022. He is also facing legal issues in South Korea.

Kwon was arrested in Montenegro in March 2023 while attempting to board a private flight to the United Arab Emirates using forged documents. He was taken into custody after both the U.S. and South Korea requested his extradition.

A prominent figure in the crypto world, Kwon founded the Terra blockchain network, which promised to revolutionize the world of stablecoins with its advanced technology. However, everything came crashing down in May 2022, just months after the crypto market peaked in late 2021. The collapse of Kwon’s stablecoin project resulted in a staggering $60 billion loss for both retail and institutional investors.

As the crypto industry faced a wave of bankruptcies, Kwon became a subject of interest for authorities. Companies like Three Arrows Capital and FTX filed for bankruptcy due to a major liquidity crisis, and Kwon managed to slip away to Europe. After an Interpol red notice and global attention, Kwon was eventually located in Montenegro’s capital, Podgorica.

Kwon’s company, Terraform Labs, agreed to a record $4.47 billion settlement with the U.S. Securities and Exchange Commission after a jury found it guilty of defrauding crypto investors.