Do Kwon in US Custody After Extradition Battle
Do Kwon, the co-founder of Terraform Labs, is now in US custody after a lengthy battle over his extradition. Kwon was arrested in Montenegro in 2023 for using falsified travel documents. His extradition has been a point of contention, with both the United States and South Korea seeking his return to face charges.
Key Developments:
Extradition to the US: After months of legal battles, Montenegrin authorities handed over Kwon to US law enforcement on Dec. 31. This came after the Montenegrin Justice Minister Bojan Božović approved Kwon’s extradition to the US, rejecting a petition from South Korea, where Kwon also faces charges.
Prime Minister’s Statement: Montenegrin Prime Minister Milojko Spajić emphasized that Montenegro welcomes innovation but has “zero tolerance for fraud,” reinforcing the country’s commitment to international justice.
Background:
Terra Collapse: Kwon is accused of being involved in the 2022 collapse of the Terra ecosystem, which led to a major crypto market downturn. His actions, along with other Terraform executives, have led to charges from both US and South Korean authorities.
Legal Limbo: After his arrest in Montenegro, Kwon spent months in prison for using falsified travel documents. His extradition was delayed multiple times due to legal appeals filed by his defense team.
US Charges:
The US Justice Department charged Kwon with eight felony counts in March 2023, including commodities fraud, wire fraud, and market manipulation.
In April, Kwon and Terraform Labs were found liable for fraud in a civil case brought by the US Securities and Exchange Commission (SEC). The two parties agreed to pay $4.5 billion in disgorgement, civil penalties, and prejudgment interest.
It remains unclear when Kwon will appear in US court following his extradition. His legal battles are expected to continue as authorities move forward with their case against him.
