Montenegro has officially extradited Do Kwon, the co-founder of Terraform Labs, to the United States after a lengthy legal battle. In a December 31 post on X, Montenegrin Prime Minister Milojko Spajić confirmed that Do Kwon was in U.S. custody and implied that he would soon be heading to the U.S. to face criminal charges.
The transfer occurred four days after Montenegrin Justice Minister Bojan Božović authorized Kwon’s extradition to the U.S., rejecting a request from South Korea, where Kwon also faces charges and holds citizenship. He praised the extradition, emphasizing that Montenegro supports legitimate innovation in technology fields like crypto and AI but has “zero tolerance for fraud.” He added that this extradition highlights Montenegro’s commitment to international justice and the rule of law.
Kwon is accused of being involved in the 2022 collapse of the Terra/Luna cryptocurrency ecosystem, which caused significant losses in the crypto market. Kwon’s legal troubles began after the Terra/Luna crash in 2022, which led to a massive loss of investor funds. Both the U.S. and South Korea charged Kwon and other Terraform executives with crimes such as fraud and market manipulation. Kwon, however, had been elusive, and his whereabouts remained unknown for some time.
He was eventually arrested in Montenegro in 2023 for using falsified travel documents. Kwon spent four months in a Montenegrin prison before being caught up in a complex legal process. For over a year, Montenegrin courts deliberated on whether to extradite him to the U.S. or South Korea. Every time a decision seemed close, Kwon’s legal team filed appeals, delaying the process.
In the U.S., the Securities and Exchange Commission (SEC) filed a civil lawsuit against Kwon and Terraform Labs. In April 2024, both were found guilty of fraud, and Kwon was ordered to pay around $4.5 billion in penalties. In addition, the U.S. Department of Justice charged him with eight felony counts, including wire fraud, commodities fraud, and conspiracy to manipulate the market. While Kwon has now been handed over to U.S. authorities, it’s unclear when he will appear in court. His extradition marks a significant step in addressing the legal consequences of the Terra/Luna collapse.
