Terraform Labs’ Do Kwon to be extradited to US after court ruling

• High Court in Montenegro has ruled to allow Terraform Labs’ Do Kwon to be extradited to the US.
• Kwon faces US fraud charges tied to losses from UST stablecoin collapse.
• SEC alleges Kwon raised billions through unregistered crypto transactions.

In a significant development, the High Court in Podgorica has ruled to extradite Do Kwon, the co-founder of Terraform Labs, to the United States. The High Court made the decisive move to extradite Do Kwon to the United States, rejecting South Korea’s extradition request.

The ruling follows Kwon’s arrest in Montenegro in March 2023 for using a counterfeit passport while attempting to leave the country. Despite initially agreeing to be extradited to South Korea, Kwon’s legal situation took a turn as he faced mounting challenges, including a four-month prison sentence in Montenegro for document forgery.

Earlier, Do Kwon’s legal team had put up a spirited fight successfully challenging the extradition order twice — in December 2023 and at the beginning of February 2024.

However, the high court decision marks a pivotal moment in Kwon’s legal battle, as he now prepares to face fraud charges in the US related to his involvement with Terraform Labs and the alleged misconduct surrounding the issuance of crypto asset securities.

Do Kwon to face US charges

Do Kwon’s extradition to the United States comes amid a myriad of fraud accusations by the Securities and Exchange Commission (SEC).

The SEC alleges that Kwon and Terraform Labs raised substantial funds from investors through unregistered transactions involving crypto asset securities. The jury trial for these fraud claims was postponed to late March, giving Kwon’s legal team time to navigate the complexities of extraditing him from Montenegro.

As the Terraform Labs case unfolds, stakeholders in the crypto community and beyond are closely monitoring the outcome and its potential implications for regulatory oversight and investor protection.