Terraform Labs Co-Founder Do Kwon to be Extradited to South Korea Following Montenegro Court Ruling

Terraform Labs co-founder Do Kwon is set to be extradited to South Korea following a decision by the Montenegro Appellate Court, according to a recent announcement.

This decision, which upholds an earlier ruling, concludes a prolonged legal debate regarding whether Kwon would face charges in the United States or South Korea. With no further appeals filed against the decision, Kwon's extradition is expected to proceed swiftly at South Korea’s request, as confirmed by the court through a news release translated from Croatian to English.

Both South Korea and the United States have been vying for Kwon's extradition in connection with the catastrophic collapse of his algorithmic stablecoin, TerraUSD, and its supporting token, Luna, in May 2022. The implosion of this $60 billion project led to investor losses amounting to tens of billions of dollars.

In September 2022, South Korea issued an arrest warrant for Kwon, initiating a months-long international manhunt that involved Interpol. In February 2023, the U.S. Securities and Exchange Commission (SEC) charged Kwon with orchestrating a multi-billion dollar crypto fraud, followed by the U.S. Justice Department filing criminal charges in March.

Kwon reappeared in Montenegro in April 2023, where he was detained for attempting to flee to Dubai using a fake passport. Subsequently, a U.S. court in April found Terraform Labs and Kwon liable for fraud. In June, Terraform agreed to pay the SEC $4.47 billion in penalties, with Kwon personally liable for an additional $204 million.

The latest ruling by the Montenegro Appellate Court signifies a critical juncture in this high-profile case, as Terraform Labs ceases operations amid the legal fallout.