Terraform Labs co-founder Do Kwon is set to be extradited from Montenegro to South Korea after a ruling by the Balkan nation’s court of appeals. The decision concludes a long legal battle over extradition requests from South Korea and the U.S. related to the $40 billion collapse of the Terra/LUNA ecosystem in May 2022. The Appellate Court of Montenegro confirmed the extradition to South Korea, rejecting the U.S. appeal and emphasizing South Korea’s earlier request priority. Kwon’s lawyer stated that the extradition process would be coordinated with Interpol for a swift resolution.
The collapse of the Terra/LUNA ecosystem in 2022 triggered a series of high-profile cryptocurrency failures, causing a loss of approximately $40 billion in market value. Following the collapse, Do Kwon went into hiding and became a fugitive. Interpol issued a red notice for his arrest, making him one of the most wanted fugitives in the cryptocurrency world. Kwon was eventually arrested in Montenegro in March 2023 while attempting to fly to Dubai using a fake passport and was sentenced to four months in prison for document forgery.
Following his release on bail, Kwon remained in Montenegro facing extradition as well as civil fraud charges in the U.S. In April 2023, a New York jury found Kwon and Terraform Labs liable for civil fraud and agreed to a $4.5 billion civil settlement with the SEC. Despite the settlement, the U.S. continued to seek Kwon’s extradition for further prosecution. His stay in Montenegro was marked by political allegations, including claims of financial support to political parties, leading to investigations and statements from involved parties.
With the impending extradition of Do Kwon to South Korea, the final steps in the legal battles following the Terra/LUNA collapse are being taken. The 16 months of legal proceedings involving various courts and jurisdictions are set to come to a resolution as Kwon is transferred to face charges in his native country. Meanwhile, Kwon’s trial in absentia has already begun in the United States, leading to significant financial penalties for Terraform Labs. The extradition process will involve coordination with Interpol to ensure a smooth transfer of Kwon to South Korea.
