The legal proceedings surrounding Do Kwon, the co-founder of Terraform Labs, are nearing a critical point. According to reports from Montenegrin local media, the extradition process is in its final stages, with a decision expected by Sunday, October 19.
Insight Into Do Kwon’s Extradition Ruling
On October 17, Bojan Bozovic, Montenegro’s Minister of Justice, confirmed that the government had selected the destination for Do Kwon’s extradition. However, he did not disclose which country will take custody of the Terraform Labs co-founder. Both the United States and South Korea have requested his extradition in connection with crypto fraud charges.
Bozovic indicated that the final documentation for Kwon’s extradition could be signed as early as the end of this week. However, no further details were provided on which nation Kwon will be sent to.
“On this issue, as Minister of Justice, I have nothing more to comment on after the decision of the Supreme Court,” Bozovic said, according to a local news report. He further added, “It would have been easier for me if it hadn’t been like this and the court had decided which country he should be extradited to. On the other hand, when the court leaves it to us to decide, I must act accordingly.”
What All Happened Till Now?
Do Kwon has been held in Montenegro since March 2023 after being arrested in Podgorica. He was detained while attempting to travel using falsified documents. Following his arrest, Kwon was convicted of forgery charges and served a six-month prison sentence in Montenegro.
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The collapse of Terra’s stablecoin ecosystem, which Kwon co-founded, resulted in losses amounting to billions of dollars for investors. The crash occurred in May 2022, wiping out the value of the TerraUSD and Luna tokens. Kwon has been the subject of multiple criminal investigations in South Korea, the United States, and Singapore.
In September 2023, Interpol issued a red notice for Kwon, further complicating his legal situation. He now faces extradition requests from several countries. In South Korea, authorities have filed fraud charges against Kwon, holding him responsible for the Terra collapse. The U.S. has also pursued similar charges, accusing him of violating securities laws.
The decision to extradite Kwon became possible after Montenegro’s Supreme Court ruled in September 2023 that the conditions for his extradition were legally sound. This ruling cleared the way for the Minister of Justice to make the final decision. Nonetheless, the court did not specify which country Kwon should be sent to, leaving the decision to Montenegrin authorities.
Kwon’s arrest in Montenegro came after months of evading law enforcement. He had allegedly been hiding in Serbia before attempting to leave the region. His capture and subsequent legal battles have become a focal point in the ongoing fallout from Terra’s collapse.
Kwon’s case has drawn widespread attention due to the scale of the financial damage caused by the implosion of the Terra ecosystem. Investors across the globe were affected when TerraUSD, a stablecoin, lost its peg to the U.S. dollar, leading to a chain reaction that sent the price of Luna plummeting.
While Kwon has been detained in Montenegro, the price of Terra Luna Classic, a token related to the original Luna, has shown some upward movement since July. However, the broader cryptocurrency market experienced a significant crash in early August, which impacted the token’s gains.
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As of now, the exact country where Do Kwon will face prosecution remains unknown. Both South Korea and the United States are keen to bring him to trial, with extradition expected to proceed shortly.
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