On August 1, the Court of Appeal of Montenegro upheld a decision to extradite Do Kwon to South Korea, denying the U.S. its extradition request and reportedly making a ‘final’ decision.

Kwon, a South Korean national, is implicated in a $40 billion crypto fraud linked to the collapse of the Terra cryptocurrencies. Kwon’s legal saga began with the crash of TerraUSD and Luna in May 2022, triggering significant investor losses. 

Timeline of Do Kwon’s arrest

In March 2023, he was arrested in Montenegro while attempting to travel with forged documents. He received a four-month prison sentence, during which multiple extradition requests from the U.S. and South Korea emerged.

The Montenegrin courts have issued several rulings on his extradition, initially deciding in favor of the U.S. However, the decision was later overturned, favoring South Korea due to its earlier request and significant charges against Kwon, including fraud and bribery.

In early March 2024, Montenegrin authorities even approved sending the co-founder of Terraform Labs to South Korea.

Kwon’s legal issues extend beyond extradition battles. In April 2024, a New York jury found him and his company, Terraform Labs, liable for civil fraud, resulting in a $4.5 billion settlement with the SEC. Despite the settlement, U.S. authorities continue to pursue criminal charges​.

As Kwon awaits extradition to a shelter for foreigners near Podgorica, time will tell if there are further appeals or decisions made.

RadioFreeEurope reporting helped with this news.