United States welcomes Montenegrin handover of Terraform Labs' Kwon for prosecution
In a significant turn of events, Do Kwon, the founder of Terraform Labs, the company behind the collapsed cryptocurrency TerraUSD and Luna, has been extradited from Montenegro to the United States. This extradition, which took place on December 31, 2024, marks a crucial step in the ongoing legal proceedings against Kwon.
Kwon, a South Korean software engineer educated at Stanford University, found himself in legal trouble after the collapse of Terra/Luna in May 2022. The collapse wiped out nearly $45 billion in market value and triggered extensive legal actions internationally. Kwon was arrested in Montenegro in March 2023 using falsified documents and has since been charged by a U.S. federal grand jury with multiple counts including securities fraud, commodities fraud, wire fraud, and conspiracy.
After extradition, Kwon originally pleaded not guilty but as of August 2025, he pleaded guilty on two fraud charges as part of a plea deal, agreeing to forfeit $19 million. His sentencing is scheduled for December 2025. This case is one of the most significant crypto-related legal prosecutions, reflecting increased regulatory scrutiny of the cryptocurrency industry.
Montenegro's involvement in the case is linked to a broader political context. Documents from Kwon's confiscated laptop allegedly indicated his financial backing of Milojko Spajić, an opposition prime ministerial candidate and former Montenegrin finance minister. These allegations were denied by Kwon and his lawyers. This connection highlights Montenegro’s engagement in fighting fraud and upholding international law amid innovation challenges.
Meanwhile, another figure in the crypto world, Richard Heart, has found himself in legal trouble. The founder of HEX, PulseChain, and PulseX projects, was placed on an international wanted list for tax evasion and assault charges in late December. However, it is not mentioned if Heart is connected to the Terra/Luna case in any way. The extradition of Do Kwon from Montenegro occurred on the same day as the announcement of Heart's wanted status, but it is not clear if the two events are related.
The Justice Minister of Montenegro, Bojan Božović, approved the transfer of Terra's founder to US authorities on December 27, 2024. The Prime Minister of Montenegro, Milojko Spajić, made a statement about the extradition on December 31, 2024, confirming the event. The extradition took place at Podgorica Airport in Montenegro.
Despite these high-profile cases, Montenegro remains committed to welcoming innovation and law-abiding entrepreneurs in cryptocurrency, AI, and other technologies. The country's cooperation in arresting and extraditing Kwon to the U.S. demonstrates its engagement with international justice mechanisms, reinforcing the importance of cross-border cooperation in addressing fraud and corruption, especially amid concerns around emerging technologies and financial innovation.
This case underscores the global legal complexities surrounding cryptocurrency innovation, fraud, and international justice cooperation. As the crypto world continues to evolve, it is likely that such cases will become more common, underscoring the need for clear regulations and international cooperation.
The extradition of Do Kwon from Montenegro to the United States in December 2024, amidst multiple fraud charges related to the collapse of Terra/Luna, is a significant event in the general-news category that also ties into the sector of crime-and-justice. This action by Montenegrin authorities highlights their commitment to upholding international law and engaging in fighting fraud, despite the country's continued support for cryptocurrency innovation. Meanwhile, another crypto figure, Richard Heart, has found himself in legal trouble for tax evasion and assault charges, but it remains unclear if his cases are connected to Kwon's.
