Montenegro to Extradite Crypto Entrepreneur Do Kwon to the US

Montenegro announced on Friday its decision to extradite South Korean cryptocurrency entrepreneur Do Kwon to the United States. This comes after a series of legal battles over his removal, ending with the Constitutional Court's rejection of his appeal earlier this week.

Do Kwon, whose real name is Kwon Do-hyung, is accused of orchestrating fraud related to the collapse of Terraform Labs, which caused investors worldwide to lose $40 billion and destabilized the global cryptocurrency market.

The crypto mogul was arrested in Montenegro in March 2023 while attempting to board a flight using fake Costa Rican travel documents. Before his capture, he had been on the run after fleeing South Korea and later Singapore following Terraform Labs' infamous crash in May 2022.

The Montenegrin Ministry of Justice stated on Friday that it had decided to prioritize the US extradition request over South Korea's. Justice Minister Bojan Bozovic approved the decision, citing that the majority of legal criteria favored the US.

Earlier this year, Montenegro deported Kwon's business partner, identified as J.C.H., to South Korea.

Terraform Labs had gained global attention for creating TerraUSD, a "stablecoin" pegged to the US dollar, which was promoted as a revolutionary step in cryptocurrency. However, the system collapsed in 2022, triggering a financial crisis for investors. Experts described the setup as a Ponzi scheme that cost many people their life savings.

In January 2023, Terraform Labs filed for bankruptcy in the US, marking the downfall of one of crypto's most hyped ventures. This case has fueled ongoing scrutiny from regulators on the cryptocurrency industry, following other high-profile failures like the collapse of FTX.

 

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