After 18 months of legal battles, Montenegro has
approved the extradition of the disgraced crypto entrepreneur Do Kwon to the
United States, where he faces fraud charges, local media publication Vijesti reported.
In May 2022, the cryptocurrency market faced heightened volatility that left investors with losses. Two digital tokens, TerraUSD and
Luna, lost nearly all their value, erasing nearly $40 billion from the market in days.
This disaster marked one of the most significant
failures in crypto history, with South Korean entrepreneur Do Kwon at its
center.
Montenegro’s Crucial Decision
Montenegro’s Minister of Justice, Bojan Božović, has
now signed the order allowing Do Kwon’s extradition to the United States,
following a detailed review by the country’s Supreme Court.
While South Korea also sought his extradition, the
Ministry prioritized the US request, citing the severity of the charges and
broader legal considerations. This decision ended months of courtroom
deliberations, as Montenegro lacked direct extradition treaties with either
country.
The downfall of TerraUSD and Luna triggered global
outrage. US regulators accused Kwon of orchestrating a multibillion-dollar
fraud through his company, Terraform Labs.
Outgoing SEC Chairman Gary Gensler claimed Kwon misled
investors with promises of stability and growth for his tokens. Despite
billions in investments, the tokens entered a death spiral in May 2022,
sparking a broader cryptocurrency sell-off.
Interpol issued a “red notice” for Kwon in
September 2022. Authorities tracked him across multiple countries before his
arrest in Montenegro in March 2023. He was detained at Podgorica Airport while
attempting to board a flight to Dubai using forged documents.
Mounting Legal Troubles
Kwon has faced legal troubles worldwide. In February
2023, US regulators charged him with fraud, alleging he misrepresented
TerraUSD’s stability. Meanwhile, his partner, Han Cheng Jun, was extradited to
South Korea earlier this year.
In Montenegro, Kwon served a four-month sentence for
forging official documents. Following his release, authorities detained him
again while deciding his fate for extradition.
With Montenegro’s decision finalized, Kwon will be
extradited to the US, where he faces charges of securities fraud and investor
deception. The case is expected to set an important moment in cryptocurrency
regulation, potentially shaping how global authorities handle similar incidents
in the future.
This article was written by Jared Kirui at www.financemagnates.com.
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