MONTENEGRO-JUSTICE-COURT-CRYPTOCURRENCY
Montenegrin police officers of the PJP (Special Police Unit) escort South Korean cryptocurrency entrepreneur Do Kwon (C) at the exit of a court in Podgorica, Montenegro, on March 23, 2024. SAVO PRELEVIC/AFP via Getty Images

Montenegro approved the extradition of Do Kwon, the South Korean crypto mogul behind the $40 billion collapse of Terraform Labs, to the United States to face charges of fraud and financial crimes.

Kwon, the founder of Terraform Labs, was arrested in March 2023 in Montenegro while attempting to flee to Dubai with a fake passport, AP News reported.

Both the United States and South Korea sought his extradition in connection with the catastrophic failure of the TerraUSD and Luna cryptocurrencies in May 2022, which wiped out billions of dollars and devastated retail investors globally.

After months of legal battles and multiple court rulings, on December 22, Montenegro's Supreme Court ultimately favored the U.S. in the extradition request.

Kwon's legal team has contested the decision, arguing for extradition to South Korea. He faces serious charges, including fraud, following the collapse of Terraform Labs' algorithmic stablecoins, TerraUSD and Luna, which caused a ripple effect in the crypto market.

South Korea