Terraform Labs Co-Founder Do Kwon Awaits Extradition Decision in Montenegro

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Yet another legal drama involving Do Kwon, the co-founder of Terraform Labs, is reaching a decisive moment. Montenegrin officials have confirmed that the extradition process is in its final stages, with a ruling expected by Sunday, October 19. According to Bojan Bozovic, Montenegro’s Minister of Justice, the government has selected a destination for Kwon’s extradition, though they have yet to disclose whether he will be sent to the United States or South Korea, both of which have submitted requests. 

This week will be head-on heels for Do Kwon, let’s check out what comes next. 

Final Stages of the Extradition Process

On October 17, Bozovic announced that the final documents needed for Kwon’s extradition could be signed by the end of this week. However, he refrained from providing further details on which country will receive Kwon. Both South Korea and the United States have charged Kwon with multiple counts of crypto fraud, tied to the collapse of the Terra ecosystem, which resulted in massive losses for investors worldwide.

Bozovic admitted that while the Supreme Court has ruled that Kwon is eligible for extradition, the responsibility of determining which country will take custody of him has been left to Montenegrin authorities. “It would have been easier for me if the court had decided,” Bozovic stated, highlighting the difficulty of the decision.

Legal Journey and International Charges

Do Kwon’s legal troubles began when Terra’s algorithmic stablecoin, TerraUSD, lost its peg to the U.S. dollar in May 2022. The fallout caused TerraUSD and its sister token, Luna, to crash, leading to billions in losses for investors and sparking criminal investigations across multiple countries. Kwon has been the subject of fraud charges in South Korea, the United States, and Singapore.

Following the collapse, Kwon evaded authorities for months, reportedly hiding in Serbia. His eventual arrest in Montenegro occurred in March 2023, as he attempted to leave the region using falsified travel documents. After being convicted of forgery, Kwon served a six-month sentence in Montenegro, where he has remained in custody while his extradition is processed.

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Awaiting the Final Decision

The decision on Kwon’s extradition has been delayed despite the Supreme Court of Montenegro ruling in September 2023 that the conditions for his extradition were met. The court, however, did not specify which country Kwon should be sent to, leaving the final decision in the hands of the Montenegrin government.

As the extradition decision nears, both the U.S. and South Korea remain eager to prosecute Kwon for his role in Terra’s downfall. Overall, a resolution is expected imminently, with Kwon likely to face trial soon.