Montenegro Grants Extradition of Do Kwon to the U.S.

Montenegro has approved the extradition of Do Kwon, the South Korean entrepreneur at the heart of the 2022 collapse of the TerraUSD and Luna cryptocurrencies, to the United States. The decision came after 18 months of legal proceedings, with the country's Minister of Justice, Bojan Božović, signing the extradition order.

According to local media Vijesti, this follows an extensive review by Montenegro's Supreme Court, which examined the extradition request from both the US and South Korea. Despite South Korea's request, Montenegro prioritized the US due to the severity of the charges against Kwon.

Kwon, who co-founded Terraform Labs, faces multiple fraud charges in the US, with regulators accusing him of misleading investors about the stability of his digital tokens. In May 2022, the sudden collapse of TerraUSD and Luna led to massive losses in the cryptocurrency market, wiping out approximately $40 billion. The event sparked a global crisis in the crypto sector, prompting investigations into Kwon's role.

Authorities tracked Kwon across several countries after Interpol issued a "red notice" for his arrest. He was apprehended in Montenegro in March 2023, attempting to board a flight to Dubai using fraudulent documents. His extradition to the US marks a significant step in the ongoing global efforts to address fraud within the cryptocurrency space. Legal experts believe the case could set important precedents for how governments handle similar fraud cases in the future.