Montenegro’s Constitutional Court has rejected an appeal by crypto mogul Do Kwon, paving the way for a decision on his extradition to either the U.S. or South Korea.
Do Kwon, the founder of Terraform Labs, has faced a setback as Montenegro’s Constitutional Court has dismissed his appeal to reconsider his extradition decision. This development indicates that Kwon’s fate will now be determined by Montenegro’s justice minister, who will decide whether he will be extradited to the United States or South Korea for trial.
Kwon is currently wanted in both countries for separate legal matters. In the U.S., he is facing charges related to the collapse of his algorithmic stablecoin TerraUSD (USTC) and token Luna (LUNA) in May 2022. Similarly, in South Korea, he is entangled in legal issues stemming from his actions. Kwon was apprehended in Montenegro in March 2023 while attempting to board a private flight to the UAE using falsified documents.
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Do Kwon was once a prominent figure in the cryptocurrency realm, having established the Terra blockchain network with the vision of pioneering algorithmic stablecoins. However, his empire crumbled in May 2022, shortly after the cryptocurrency market reached its peak in late 2021, resulting in significant losses amounting to $60 billion for both individual and institutional investors.
Amidst the turmoil within the crypto industry following bankruptcies, Kwon evaded authorities. The collapse led to the bankruptcy of companies such as Three Arrows Capital and FTX due to a severe liquidity crisis, prompting Kwon to flee to Europe. Following an Interpol red notice and global scrutiny, Kwon was apprehended in Montenegro’s capital, Podgorica.
Kwon’s company, Terraform Labs, recently agreed to a historic $4.47 billion settlement with the U.S. Securities and Exchange Commission after being found guilty of deceiving crypto investors.
Read more: Terraform to dissolve following $4.47b settlement with SEC