Kwon Do-Hyung (Do Kwon), the co-founder of collapsed cryptocurrency project Terra will be extradited to the United States following Montenegro’s high court decision. The court’s decision follows extensive deliberations on the legal and political implications of extradition.
According to local news reports, the decision to extradite the former crypto king to the US came after the Court of Appeal directed the High Court to decide whether he should be extradited to the United States or South Korea.
Thus, after a thorough legal review, the court determined that Do Kwon met the criteria for extradition to face charges in the US, rejecting South Korea’s request.
The Fallen Crypto King
Do Kwon was well known in the crypto space as the co-founder and CEO of Terraform Labs which attracted about 40 million users. However, the project collapsed in May 2022, resulting in billions of dollars in losses. The crash also set off a wave of bearish trends in the cryptocurrency market.
Following the Terra blockchain crash, the United States and South Korea sought Do Kwon for his involvement. The US Securities and Exchange Commission (SEC) charged him with eight criminal counts including securities, commodities fraud, and market manipulation. According to the agency, Kwon misled investors about the stability of Terra’s algorithmic stablecoin UST, among other things, resulting in a $40 billion crypto fraud that cost investors billions.
Although he managed to conceal himself for several months after the crash, he was later arrested at Montenegro’s Podgorica Airport in June 2023. He and one of his executives, Han Chang-Joon were possessing falsified documents which further added charges to their already ongoing legal trouble. Following the arrest, a Montenegro court sentenced them to four months in jail for charges involving document forgery.
Kwon’s associate and Terraform Labs CFO Han Chang-Joon has already been extradited from Montenegro to South Korea earlier this month.
The latest development of Do Kwon’s extradition to the United States can be seen as a sign that the trial of one of the most infamous collapses in cryptocurrency history is nearing its conclusion. This move emphasizes the growing global crackdown on cryptocurrency-related fraud. It signals a watershed moment in regulatory efforts to protect investors.
