1st January 2025 – (Podgorica) Montenegro has extradited South Korean cryptocurrency expert Do Kwon to the United States, where he is sought in connection with his firm’s multi-billion-dollar bankruptcy, officials announced on December 31. The Montenegrin interior ministry confirmed that Kwon was “handed over to the competent law enforcement authorities of the United States and agents of the Federal Bureau of Investigation (FBI).”
This extradition follows a decision by Montenegro’s justice ministry to proceed with legal action against Kwon for “crimes of conspiracy to commit fraud.” For months, both Seoul and Washington have pursued Kwon, who is implicated in a fraud case that resulted in the loss of approximately $40 billion in investor funds and severely impacted global cryptocurrency markets.
Justice Minister Bojan Bozovic approved the extradition last week, concluding a lengthy process of court rulings and reversals spanning a year and a half. Kwon’s legal team in Montenegro has condemned the decision, asserting it violates European extradition conventions, and they intend to appeal to both the country’s constitutional court and the European Court of Human Rights.
“Today, Montenegro completed the extradition of Do Kwon to the United States to face charges in the Terra/Luna case,” stated Prime Minister Milojko Spajic on X. “This extradition demonstrates our unwavering commitment to international justice and the rule of law!”
Kwon was arrested in March 2023 at Podgorica airport while attempting to board a flight to Dubai, carrying a counterfeit Costa Rican passport. Prior to his arrest, he had been evading authorities for months, having fled South Korea and Singapore after his firm declared bankruptcy in 2022.
Terraform Labs, which launched the TerraUSD cryptocurrency marketed as a “stablecoin,” attracted significant investment before its dramatic collapse in May 2022. Once hailed as a “genius,” Kwon’s reputation has since been tarnished, with experts labelling his venture a pyramid scheme that left many investors devastated.
In January, Terraform Labs initiated bankruptcy protection proceedings in the United States, aiming to manage ongoing legal challenges while fulfilling its obligations to employees and vendors. The scrutiny of cryptocurrencies has intensified in light of various controversies, including the collapse of several high-profile exchanges.
