Do Kwon is Extradited to the United States: Facing Justice for the Collapse of Terra

Montenegro has officially extradited Do Kwon, co-founder of Terraform Labs, to the United States. This move comes after a year-long legal battle over extradition requests from South Korea and the United States, which has finally been resolved by the Montenegrin Ministry of Justice. Detailed guidance On December 31, 2024, Montenegrin police handed over Do Kwon to FBI officers at Podgorica Airport. Prime Minister Milojko Spajić confirmed the handover in a post on X, stating that Kwon would have to face charges in the United States. This decision was made after Justice Minister Bojan Božović rejected South Korea's extradition request just a few days earlier. In a statement, Božović emphasized Montenegro's uncompromising stance against fraud while still supporting legitimate technological innovation. He sees extradition as evidence of Montenegro's commitment to international justice. Legal battle and the collapse of Terra/Luna Do Kwon's trouble began with the catastrophic collapse of the stablecoin TerraUSD and its sister token Luna in May 2022. Touted as a groundbreaking financial tool, TerraUSD relied on an algorithmic mechanism that critics deemed unstable. As its value plummeted, the connected Luna token also crashed, wiping out $33.9 billion in market value. The collapse has sparked global protests, with regulatory agencies warning of systemic risks caused by poorly managed stablecoins. Authorities in both the United States and South Korea have charged Kwon with fraud, market manipulation, and other offenses. Arrests and prolonged legal battles After months of hiding, Kwon was arrested in Montenegro in March 2023 while attempting to travel with fake passports from Costa Rica and Belgium. His arrest added the charge of forging documents to his growing list of legal troubles. For over a year, the Montenegro court has been considering the case, with Kwon's legal team filing multiple appeals to delay the process. Finally, Montenegro prioritized the request of the United States, citing comprehensive criteria evaluated by the Department of Justice. In the United States, Kwon faces eight serious charges, including securities fraud, money laundering, and conspiracy. The Securities and Exchange Commission (SEC) has also filed a civil lawsuit against Kwon and Terraform Labs. In April 2024, the SEC concluded that both are guilty of fraud, imposing a fine of $4.5 billion. Gary Gensler, Chairman of the SEC, declares: "We accuse Terraform and Do Kwon of not providing the public with full, fair, and honest disclosure as required for various types of cryptocurrency securities, most notably Luna and TerraUSD. We also allege that they have defrauded by repeating false statements and creating misunderstandings to build trust before causing serious losses to investors."