Key Takeaways:
- Extradition Concluded: Montenegrin authorities have handed over Terraform Labs co-founder Do Kwon to US custody after rejecting South Korea’s competing petition.
- Legal Charges: Kwon faces eight felony charges in the US, including wire fraud and market manipulation, alongside a $4.5 billion civil penalty from the SEC.
- International Justice: Montenegro emphasized its zero-tolerance stance on fraud, marking Kwon’s extradition as a commitment to upholding the rule of law.
Terraform Labs co-founder Do Kwon has been extradited to the United States, concluding a lengthy legal dispute with Montenegrin authorities.
Prime Minister Milojko Spajić announced the transfer on December 31, affirming Montenegro’s dedication to justice and its zero tolerance for fraud.
Today Montenegro completed the extradition of Do Kwon to the United States to face charges in the Terra/Luna case.
— Milojko Spajić (@MickeySpajic) December 31, 2024
Our nation WELCOMES INNOVATION and legitimate crypto, AI and other tech entrepreneurs – but we have ZERO TOLERANCE FOR FRAUD. This extradition demonstrates our…
Kwon’s extradition follows Justice Minister Bojan Božović’s decision to prioritize the U.S. request over a competing bid from South Korea, where Kwon also faces charges as a citizen.
Kwon rose to infamy after the 2022 collapse of the Terra ecosystem, which led to a cryptocurrency market crisis.
He evaded authorities until his arrest in Montenegro in 2023 for possessing forged travel documents.
His extradition marks the end of a tumultuous period in which he served four months in a Montenegrin prison while courts deliberated between U.S. and South Korean claims.
In the U.S., Kwon faces eight felony charges, including wire fraud, commodities fraud, and market manipulation.
In a separate civil case, Terraform Labs and Kwon were found liable for fraud by the SEC, resulting in penalties exceeding $4.5 billion.
While his court appearance timeline remains unclear, Kwon’s extradition underscores international efforts to address financial crimes in the cryptocurrency industry.
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