South Korea to Receive Do Kwon Following Montenegro Extradition Ruling

Montenegro's Appellate Court has confirmed that Terraform Labs co-founder Do Kwon will be extradited to South Korea, following an earlier decision by the High Court of Podgorica.

This ruling favors South Korea over the U.S. in the long-standing legal tug-of-war.

After an extended legal battle, the Montenegro Appellate Court ruled on August 1 in favor of South Korea. Kwon will now be sent to his home country to face charges connected to the $40 billion collapse of Terra. The court’s decision is final, with no option for appeal.

In April 2024, a U.S. court found Terraform Labs and Do Kwon guilty of fraud, accusing them of misleading investors and mishandling funds. Terraform Labs settled with the SEC for $4.47 billion in fines and penalties. Both South Korea and the U.S. have been vying for Kwon’s extradition since the $40 billion collapse of the Terra ecosystem in May 2022.

Interpol issued a red notice for Kwon in September 2022, leading to his arrest six months later as he attempted to fly to Dubai with a fake passport. Montenegro sentenced him to four months for using falsified documents. Since then, both the U.S. and South Korea have sought his extradition.

The recent court ruling rejects U.S. efforts, with Kwon’s lawyer stating that Interpol will assist Montenegro in arranging his swift transfer to South Korea.