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Crime and Investigations

Montenegro Approves Extradition of Terraform Labs Founder Do Kwon to the U.S.

Montenegro Approves Extradition of Terraform Labs Founder Do Kwon to the U.S.

Montenegro’s Minister of Justice has decided to extradite Do Kwon, the founder of Terraform Labs, to the United States, bypassing South Korea’s competing request.

This decision follows a Supreme Court ruling affirming that legal requirements for extradition have been fulfilled. Kwon faces allegations of defrauding investors and hiding assets tied to the collapse of Terraform Labs’ ecosystem in 2022.

Authorities in the U.S. and South Korea have been investigating Kwon since the TerraUSD and Luna crash wiped out $40 billion from the cryptocurrency market, triggering a cascade of bankruptcies in the sector. Kwon was arrested in March 2023 at Montenegro’s Podgorica Airport while attempting to leave the country using a fake passport. He was sentenced to four months in prison and remains detained at a facility for foreign nationals.

The Justice Ministry’s statement cited several factors in favor of U.S. extradition, including the severity of the charges and the location of the alleged offenses. Legal experts note this could set a precedent for handling cross-border cryptocurrency fraud cases.


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In addition to facing extradition, Kwon and Terraform Labs settled with the SEC in June 2024, agreeing to pay $4.47 billion in penalties. This includes disgorgement, civil penalties, and pre-judgment interest, with Kwon personally responsible for over $200 million of the total.

Meanwhile, questions have arisen about Kwon’s alleged financial ties to Montenegrin political figures, including Milojko Spajic, a prominent party leader. These connections have led to calls for further investigation, adding another dimension to an already complex case.

Author
Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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