Crypto Mogul Do Kwon Extradited to US to Face Charges

Montenegro extradited South Korean cryptocurrency mogul Do Kwon to the United States on Tuesday following a decision of its justice ministry earlier this month to accept a U.S. request, the Balkan country’s authorities said.

Why It Matters

The extradition of Kwon follows a legal saga that spanned months with both South Korea and the United States vying for custody of the disgraced entrepreneur.

Montenegrin courts had grappled with the competing requests, issuing and overturning multiple rulings before ultimately siding with the U.S., a decision that underscores the high-stakes international battle for accountability in the wake of Kwon’s alleged financial crimes.

What To Know

Do Kwon, who had been in Montenegrin custody since his arrest in March 2023, was handed over to FBI agents at the Podgorica Airport by officers of the National Central Bureau of Interpol in Montenegro, according to a statement from Montenegrin police.

He had been apprehended while attempting to flee to Dubai using a forged Costa Rican passport, a move that also landed him a prison sentence in Montenegro for document fraud.

The 32-year-old tech entrepreneur faces a litany of fraud charges in the United States, where federal prosecutors in New York accuse him of orchestrating one of the largest financial collapses in the cryptocurrency world.

Kwon and his company Terraform Labs were sued by the U.S. Securities and Exchange Commission in February 2023 over the TerraUSD and Luna cryptocurrencies, which authorities have said caused about $40 billion of losses in crypto markets.

TerraUSD was designed as a “stablecoin” pegged to assets like the U.S. dollar and intended to avoid the wild price swings typical of cryptocurrencies. However, its value plummeted in May 2022, shattering investor confidence and sparking widespread allegations of fraud and financial misconduct against Kwon and five others connected to Terraform.

The extradition comes after the Minister of Justice of Montenegro, Bojan Božović, signed the order to have the Terraform Labs co-founder extradited to the U.S. on Friday.

The case has also gained political attention in Montenegro, where former Justice Minister Andrej Milovic accused Prime Minister Milojko Spajić of influencing the decision in favor of South Korea due to alleged financial ties between the government and Kwon.

What People Are Saying

A Montenegrin police statement said: “Today, on December 31, 2024, he (Do Kwon) was handed over to the competent law enforcement authorities of the United States of America and agents of the Federal Bureau of Investigation (FBI).”

What Happens Next

Kwon will now face criminal charges in the U.S., including conspiracy to commit fraud related to securities transactions, money laundering and electronic fraud.

This article includes reporting from The Associated Press.