Montenegro’s Minister of Justice, Bojan Božovi? has signed an order to extradite Terraform Labs founder Do Kwon to the United States, bypassing competing claims from his home country, South Korea.
Kwon, at the center of the $60 billion Terra-Luna collapse in 2022, has been the subject of intense legal battles between the U.S. and South Korea. The implosion of his Terra blockchain triggered a domino effect, bankrupting major crypto firms like Three Arrows Capital, BlockFi, and FTX.
Fleeing as the crypto market unraveled, Kwon reportedly hid in Serbia before crossing into Montenegro, where he attempted to board a flight to Dubai using forged passports. Police arrested Kwon and Terraform Labs’ former finance officer, Han Chang-joon, at Podgorica airport.
Following their arrest, Kwon and Han were jailed for four months while U.S. and South Korean prosecutors fought for extradition rights. Multiple courts in Montenegro vacillated on extradition rulings, with Kwon’s lawyer, Goran Rodi?, repeatedly contesting the orders. However, Montenegro’s Constitutional Court dismissed Kwon’s latest appeal on December 25, clearing the way for the Justice Ministry’s decision.
Kwon’s company, Terraform Labs, has since shut down, agreeing to pay a record $4.47 billion settlement to the U.S. Securities and Exchange Commission. It remains uncertain if Kwon’s legal team will challenge the latest extradition order.
Once extradited to the U.S., Kwon is expected to face prosecution for his role in Terra’s collapse. South Korea, which continues its investigation into Kwon, has indicated that he could face a maximum sentence of 40 years if convicted of violating local market regulations.
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