United States Secures Extradition of Crypto Tycoon Do Kwon from Montenegro
Montenegro Extradites Terra's Founder, Do Kwon, to the United States
In a significant development on December 31, 2024, Montenegro completed the extradition of Do Kwon, the founder of Terra and several cryptocurrency projects, to the United States. This move marks the end of a tumultuous legal journey that began in spring 2023.
The extradition was confirmed by Montenegro's Prime Minister, Milojko Spajić, and is related to the Terra/Luna case. Kwon had been held in a migration center since March 2024 while awaiting the resolution of his case.
The legal proceedings between Kwon and local courts in Montenegro had been ongoing since his arrest in March 2023, when he was found using a forged Costa Rican passport. Kwon pleaded not guilty to the charges, but a Montenegrin court sentenced him and Terraform Labs' former finance officer, Han Chang-joon, to four months' imprisonment for the forged passports in June 2023.
In November 2023, the Montenegro High Court approved Kwon's extradition either to South Korea or the United States. However, the Montenegro Minister of Justice later decided to extradite him to South Korea. This decision was overturned in March 2024, when the Court of Appeals of Montenegro ordered the process to be redone to decide whether Kwon should be extradited to the US or South Korea.
The final decision to extradite Kwon to the United States was made on December 27, when the Justice Minister of Montenegro, Bojan Božović, approved the transfer. Montenegro's Prime Minister stated that the extradition demonstrates the country's commitment to international justice and the rule of law.
Richard Heart, the founder of HEX, PulseChain, and PulseX projects, was also placed on an international wanted list for tax evasion and assault charges in late December. It is unclear if his case is connected to the Terra/Luna case.
It's worth noting that Montenegro welcomes innovation and law-abiding entrepreneurs in cryptocurrency, AI, and other technologies. The country has zero tolerance for fraud, as demonstrated by the extradition of Do Kwon.
The Terra/Luna crypto ecosystem collapsed in May 2022 when the algorithmic stablecoin TerraUSD (UST) lost its dollar peg, wiping out around $40-$45 billion in investor assets and destroying the formerly $18 billion-$50 billion market capitalization ecosystem in days. Kwon is facing nine felony counts including securities fraud, market manipulation, money laundering, and wire fraud related to the collapse of the Terra network.
As of now, Kwon has been handed over to competent US law enforcement authorities and FBI agents at Podgorica Airport. The Terra/Luna legal proceedings in the US are expected to continue in the coming months.
In light of Montenegro's extradition of Do Kwon, the founder of Terra, to the United States, the ongoing Terra/Luna case has gained attention in the realm of general-news and crime-and-justice. This development signifies a significant step in the legal proceedings, as Kwon faces nine felony counts related to the collapse of the Terra network.
