The Constitutional Court of Montenegro has rejected the co-founder of Terraform Labs’ petition against his extradition, marking a significant milestone in his ongoing legal battles. The court’s unanimous verdict highlighted contradictions in Kwon’s case, therefore supporting a previous ruling in favor of his extradition.
Following the collapse of Terra Luna in 2022, which resulted in the loss of $40 billion from the bitcoin market, Do Kwon became a prominent figure in global financial investigations. Both the United States and South Korea are seeking his extradition due to allegations of fraud, market manipulation, and financial misbehavior.
The most recent decision places the onus on Montenegro’s justice minister to decide whether to send Kwon to South Korea or the US. Reflecting the posture of the justice ministry, current indicators point to the US as the chosen option.
Terra Luna’s meltdown started Kwon’s problems, which not only rocked the crypto market but also spurred a global investigation of distributed finance and stablecoins. Arrested in Montenegro in March 2023 with a fake passport, Kwon is accused of mishandling money and misleading investors.
Terraform Labs paid a record-breaking $4.47 billion penalty to the US Securities and Exchange Commission (SEC) in June, settling with them. Kwon personally paid fines totaling over $200 million as part of the settlement.
Stories of Kwon’s political connections to Montenegro emerged, further complicating the situation. Allegations point to his financial assistance from a local political party, which raises questions regarding possible intervention in the extradition process.
This ruling sets a precedent for worldwide collaboration in the execution of financial rules and represents a major step toward responsibility in cryptocurrency-related crimes.
