Do Kwon, Founder of Terraform Labs, Will Be Extradited to the United States

After going through a long legal and diplomacy process, Terraform Labs founder, Do Kwon, will be extradited to the United States.

Minister of Justice Montenegro has signed an extradition order for Terraform Labs founder, Do Kwon, to the United States. This marks a significant step in bringing Kwon to justice for his alleged involvement in major crypto scandals.

The Supreme Court of Montenegro has ruled that both the US and South Korea meet the legal requirements to extradite Kwon. However, the US request was prioritized as it was submitted first and includes serious charges like financial fraud and market manipulation.

“Most of the legal criteria set in support of the extradition request from US authorities,” the Justice Ministry of Montenegro stated in its official press release.

Do Kwon's Extradition Preparation

Kwon, who is currently detained at the Foreign Receivable Center in Montenegro, is expected to be moved to the US within the next few weeks. Local authorities are making final arrangements to ensure a smooth handover process.

This extradition comes as a pivotal moment in the efforts to try Kwon for his role in the collapse of the Terra-LUNA ecosystem, which resulted in billions of dollars in losses for investors and sent shockwaves through the digital asset industry.

The Terra-LUNA Case and Accusations Against Do Kwon

In May 2022, the crypto world was rocked by the collapse of Terraform Labs' flagship tokens, TerraUSD (UST) and LUNA. UST, which was marketed as a stablecoin with a fixed exchange rate of 1:1 against the US dollar, failed to maintain its stability due to the collapsing algorithmic mechanism.

The incident wiped out an estimated $40 billion (around Rp 648 trillion) in value from the crypto market and led to the bankruptcy of several digital asset firms, including Celsius.

Kwon and Terraform Labs have been accused of misleading investors about the stability of the Terra-LUNA ecosystem. Prosecutors allege that Kwon manipulated market data and failed to disclose the high risks associated with the tokens. He is also suspected of stashing away vast amounts of wealth to avoid legal responsibility.

Montenegro Arrest and Charges

Following the Terra-LUNA collapse, Kwon went on the run, evading authorities in South Korea, Singapore, and other countries. In September 2022, South Korean prosecutors secured an arrest warrant for Kwon, who was then believed to be in Singapore. Interpol subsequently issued a Red Notice for his arrest.

His flight came to an end in March 2023, when he and his associate, Han Cheng Jun, were arrested at Podgorica Airport in Montenegro while attempting to board a flight to Dubai using a fake passport. Kwon was slapped with a four-month prison sentence for passport forgery, which delayed his extradition.

As Kwon's extradition draws near, attention will shift to how the US legal system will handle the case that has gripped the crypto world.