Do Kwon extradition to South Korea upheld as Montenegro court rejects US request

Montenegro’s Appellate Court has upheld a ruling to extradite Do Kwon, co-founder of Terraform Labs, to South Korea, rejecting a push to send him to the United States instead.

The Podgorica-based court’s decision, announced on Thursday, marks the latest development in the ongoing legal saga surrounding the disgraced crypto mogul. The court stated there was no appeal against its ruling, which also upheld a fast-track extradition procedure previously issued by another Montenegrin court.

Do Kwon’s lawyer, Goran Rodic, told Bloomberg that Montenegro will arrange the extradition with assistance from Interpol, expressing hope it will happen “as soon as possible.” The decision comes after months of back-and-forth between Kwon’s lawyers, courts, and prosecutors regarding where the former executive should be extradited.

Kwon was arrested in Montenegro in March 2023 for using counterfeit travel documents while attempting to board a flight to Dubai. Both the US and South Korea are seeking criminal charges against him, with the US Securities and Exchange Commission (SEC) charging Terraform and Kwon in February 2023 over the collapse of the algorithmic stablecoin Terra USD (UST).

The SEC reached a $4.47 billion settlement with Terraform and Kwon in May, with the company set to pay $3.58 billion in disgorgement and a $420 million civil penalty. The settlement terms also bar Kwon from becoming an officer or director of any public firm.

This extradition decision is significant for the crypto industry as it sets the stage for Kwon to face legal consequences in South Korea for his role in the Terra/LUNA collapse, which caused approximately $40 billion in losses.

The case highlights the increasing global scrutiny of crypto projects and their founders, as regulators worldwide seek to hold individuals accountable for alleged financial misconduct.