Do Kwon’s Extradition Returns to Montenegro Justice Minister

Montenegro’s Supreme Court has confirmed that both the United States and South Korea have fulfilled the necessary conditions to request the extradition of Do Kwon, the founder of Terraform Labs. He is wanted in both countries to face criminal charges related to his role in the collapse of the Terra cryptocurrency. The decision on where he will be sent now lies with Montenegro’s justice minister.

Montenegro’s Ministry of Justice could soon determine whether Terraform Labs co-founder Do Kwon will be extradited to the United States or South Korea, following a key decision by the nation’s Supreme Court.

On September 20, the Supreme Court issued a notice stating that it had transferred Kwon’s case to the justice minister after reviewing a legal protection request. According to the court, both the U.S. and South Korea have met the legal criteria to seek Kwon’s extradition from Montenegro, where he faces criminal charges.

Legal Battles and Extradition Uncertainty for Do Kwon Amid Terraform’s Collapse

The Terra ecosystem’s collapse in 2022 marked the beginning of a wave of crypto firm bankruptcies, including notable names like Celsius, FTX, and BlockFi. Both U.S. and South Korean authorities quickly filed charges against Do Kwon and his associates, accusing them of playing a key role in Terra’s downfall. 

However, Kwon’s location remained a mystery until he was apprehended in Montenegro in 2023. He was arrested for using falsified travel documents and sentenced to four months in prison. Since his release, Kwon has found himself in legal limbo, with Montenegro’s courts weighing conflicting motions from his lawyers, as well as extradition requests from the U.S. and South Korea.

Terraform Labs sought Chapter 11 bankruptcy protection in the U.S. earlier this year, and a bankruptcy judge approved the firm’s winding-down plan on September 19. For many investors, however, the hope of recovering their losses remains uncertain.

As Kwon’s extradition case drags on, South Korean prosecutors have already indicted several individuals tied to Terraform, including co-founder Hyun-seong Shin. Montenegrin authorities have also approved the extradition of Terraform’s former CFO, Han Chang-Joon, who was arrested alongside Kwon, to South Korea. It is still unclear whether Montenegro’s justice minister will make the final call on Kwon’s fate. 

In April, the country’s High Court initially ruled that the decision rested with then-Justice Minister Andrej Milović, but his replacement, Bojan Božović, now holds the post after Kwon’s legal team filed an appeal.

In the U.S., a jury recently held both Terraform Labs and Kwon accountable for defrauding investors in a civil case brought by the Securities and Exchange Commission (SEC). The court ordered the company and its founder to pay approximately $4.5 billion in civil penalties, disgorgement, and prejudgment interest.