Montenegro Dismisses Do Kwon’s Extradition Appeal

Montenegro’s Constitutional Court has dismissed an appeal by Terraform Labs co-founder Do Kwon, removing a critical legal obstacle in his extradition process. The court’s decision, reportedly unanimous, cited procedural flaws in Kwon’s case and upheld a prior ruling that supported his extradition.

US Extradition Gains Momentum

The final decision now rests with Montenegro’s justice minister, who will determine whether Kwon is extradited to South Korea or the United States. Reports from South Korea suggest a stronger likelihood of extradition to the US, aligning with the justice ministry’s stance.

Both countries are pursuing Kwon over his role in the catastrophic collapse of the TerraUSD (UST) and Luna coins in 2022. The fallout erased nearly $40 billion from the crypto market, triggering a regulatory crackdown on stablecoins and decentralized finance (DeFi).

Cross-Border Crypto Enforcement

Kwon’s arrest in March 2023, while attempting to travel with a falsified passport, added an international dimension to his legal troubles. The case is seen as a pivotal moment in the global effort to combat crypto-related crimes across jurisdictions.

Massive Financial Penalties and Political Intrigue

In June 2024, Terraform Labs settled with the US Securities and Exchange Commission (SEC) for $4.47 billion, marking the largest financial settlement in SEC history. Kwon personally owes over $200 million in penalties as part of the agreement.

Complicating matters, Kwon has faced allegations of political connections in Montenegro. He reportedly supported the Europe Now party, led by Milojko Spajic, raising concerns over potential influence in the extradition process.

What’s Next for Do Kwon?

The court’s dismissal of Kwon’s appeal brings him closer to facing trial for his alleged role in one of crypto’s largest scandals. Meanwhile, the extradition case underscores the complexities of international legal cooperation in addressing the growing risks of cryptocurrency-related crimes.