The extradition of Do Kwon, founder of Terraform Labs, is poised to be finalized by the end of Sunday, according to Montenegro’s Minister of Justice, Bojan Božović. After a myriad of court rulings, appeals and extradition requests from South Korea and the USA, the final decision could now finally be made in the legal proceedings against Kwon, who has been implicated in the collapse of the Terra Luna and Terra cryptocurrencies in May 2022.
The Final Do Kwon Extradition Decision
Minister Božović stated in an exclusive interview with BIRN, “The decision has actually already been made and will be signed by the end of this working week.” This announcement follows a series of legal actions against Kwon, including indictments from South Korea, Singapore, and the United States.
In September 2023, Interpol issued a red notice for Do Kwon, highlighting his alleged involvement in the downfall of the $40 billion Terra Luna and Terra ecosystems. Subsequently, on September 19, the Supreme Court of Montenegro affirmed that the conditions for Kwon’s extradition to both South Korea and the USA had been satisfied. This ruling empowered the Minister of Justice to proceed with the issuance of the extradition permit.
Addressing the matter, Božović remarked, “On this issue, as the Minister of Justice, I have nothing more to comment after the decision of the Supreme Court. Maybe it would be easier for me if it wasn’t like this and if the court had decided to which country he should be extradited. On the other hand, when the court leaves us to decide, I have to act accordingly.”
Do Kwon was apprehended in Podgorica, Montenegro, in March 2023, amid escalating international efforts to hold him accountable for the financial repercussions stemming from the Terra Luna collapse. Terraform Labs, the company of Do Kwon, also known as Kwon Do Hyeong gained significant traction with the launch of Terra, a blockchain protocol known for its algorithmic stablecoin, TerraUSD (UST), and its sister cryptocurrency, Luna in 2018.
These assets were designed to maintain a stable value and facilitate transactions within the decentralized finance (DeFi) ecosystem. However, the stability of TerraUSD was called into question in May 2022 when the algorithmic mechanisms intended to peg UST to the US dollar failed, triggering a massive sell-off and a subsequent collapse of both UST and Luna. The sudden devaluation wiped out billions in investor holdings, leading to widespread financial distress and scrutiny from regulators worldwide.
At press time, Terra Luna Classic (LUNC) traded at $0.00009013.
