Another legal chapter in the saga of Do Kwon, co-founder of Terraform Labs, is nearing a conclusion. Montenegrin officials have confirmed that the decision on Kwon’s extradition is in its final phase. A ruling is expected by Sunday, October 19. Bojan Bozovic, Montenegro’s Minister of Justice, confirmed the government has chosen a destination for Kwon’s extradition. However, officials have yet to reveal whether he will be sent to the United States or South Korea, both of which submitted extradition requests.
Final Documents to be Signed Soon
On October 17, Bozovic shared that the final documents needed to process Kwon’s extradition could be signed this week. Despite this, he declined to specify which country would receive him. Both the U.S. and South Korea have charged Kwon with several counts of crypto fraud tied to the collapse of the Terra ecosystem, which caused huge losses for investors globally.
Related article: Legal Battle Over Extradition: US Vies for Conviction of Terraform’s Do Kwon
Although Montenegro’s Supreme Court ruled Kwon is eligible for extradition, it left the final decision to the Montenegrin authorities. Bozovic expressed that it would have been easier if the court had made the decision on the receiving country. This uncertainty adds to the challenge of the case.
Legal Troubles Following Terra Collapse
Kwon’s legal problems started after TerraUSD, the algorithmic stablecoin developed by Terraform Labs, lost its peg to the U.S. dollar in May 2022.
Related article: Terraform Labs’ Executive Do Kwon Faces SEC Trial
The crash of TerraUSD and its sister token, Luna, resulted in billions in losses for investors. This led to investigations in multiple countries. Kwon now faces fraud charges in South Korea, the U.S., and Singapore.
Arrest and Imprisonment in Montenegro
Kwon evaded authorities for months before being arrested in Montenegro in March 2023 while attempting to leave using falsified travel documents. After his conviction for forgery, Kwon served six months in a Montenegrin prison and remains in custody as authorities finalize his extradition.
The decision, initially delayed, is expected soon. The U.S. and South Korea both seek to prosecute Kwon for his involvement in Terra’s collapse. The extradition will likely result in Kwon facing trial in one of the requesting countries.
