The Court of Appeal of Montenegro has upheld a decision to extradite former Terraform CEO Do Kwon to South Korea, denying the U.S. request for his extradition. Kwon, implicated in a $40 billion crypto fraud tied to the Terra cryptocurrencies’ collapse, was arrested in March 2023 in Montenegro for traveling with forged documents.
His arrest followed the crash of TerraUSD and Luna in May 2022, causing massive investor losses. Initially, Montenegrin courts favored the U.S. request, but later overturned it in favor of South Korea due to its earlier request and more severe charges, including fraud and bribery.
In a significant development, Kwon and Terraform Labs were found liable for civil fraud by a New York jury in April 2024, resulting in a $4.5 billion settlement with the SEC. Despite this, U.S. authorities continue to pursue criminal charges.
As Kwon awaits extradition near Podgorica, his case underscores the growing international cooperation in tackling cryptocurrency fraud and its long-term implications for global financial security.
