After a months-long legal tug-of-war, it is now officially confirmed: Do Kwon, the former crypto star, will be extradited from Montenegro to the United States.
The case of the co-founder of the Terra blockchain has sparked global attention – not only due to the billions of dollars lost in his project’s collapse, but also due to the political entanglements in the country he chose for his flight.
Montenegrin Justice Minister Bojan Božović announced that the extradition of the crypto entrepreneur, now in disfavor, to the United States has been approved. The decision followed a constitutional court ruling that had rejected Kwon’s appeal.
“The majority of the legally prescribed criteria for the extradition request of the US are met” the Ministry of Justice statement reads.
Since his arrest in March 2023 in Podgorica, the capital of Montenegro, Kwon has been fighting both the authorities of South Korea and the US, with both countries submitting extradition requests and accusing him of massive fraud.
Kwon, who holds both South Korean and US citizenship, was arrested at the airport with forged Costa Rican documents, apparently attempting to flee to Dubai.
Political entanglements in Montenegro
The Do Kwon case has sent waves not only through the legal system but also through the political landscape of Montenegro. Reports suggest that the 33-year-old had close financial ties to high-ranking local politicians, including Prime Minister Milojko Spajić. These revelations sparked a scandal in the Balkan country and could further strain the already fragile political system of Montenegro.
While Kwon’s business partner, Han Chang-Joon, was extradited to South Korea at the beginning of the year, the former Terra CEO remained in extradition custody in Montenegro. Now, he will face a US court.
Terra-Luna: From Crypto Heaven to Hell
Kwon was once hailed as a crypto wunderkind. His Terra blockchain, TerraUSD, and LUNA token experienced a rapid success story – until the collapse in May 2022 destroyed it all. The Terra-Luna system collapsed, leaving an estimated $40 billion in damage. Thousands of investors lost their savings.
In the US, Do Kwon now faces a trial that could prove costly. Experts already compare his case to that of FTX founder Sam Bankman-Fried, who was recently sentenced to 25 years in prison. Whether Kwon can expect a similar fate remains to be seen.
The story of Do Kwon is a bitter setback for the already troubled crypto currency industry. It shows how quickly visionaries can become accused – and how thin the air is on the heights of crypto success.
For investors, there is little solace: their money is gone, and the hope of compensation is slim. For Kwon, however, a new chapter is about to begin – one that he would likely rather not have written.