Terra’s Do Kwon Will Be Extradited to the U.S.

Published: Feb 21, 2024
Written By:
Vignesh Karunanidhi
Milk Road Writer

A court in Montenegro has approved the extradition of embattled cryptocurrency entrepreneur Do Kwon to the United States rather than his native South Korea.

According to a recent report by local news outlet Pobjeda, American prosecutors have charged Kwon with financial crimes related to the collapse of his Terra ecosystem.

  • The Podgorica High Court favored the US claim over South Korea for Kwon.
  • Extradition follows Kwon’s arrest in Montenegro.
  • Wanted in connection with the $60 billion Terra/Luna collapse.

Montenegro’s High Court announced that Kwon will be transferred into US custody to face criminal proceedings tied to the disastrous stablecoin collapse in 2022. South Korean authorities had been competing for jurisdiction after Kwon’s detention in the Balkan country last March.

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Do Kwon was arrested with fake passports

Kwon was taken into custody along with an associate while attempting to fly to Dubai on fake Costa Rican passports from Podgorica’s airport.

Billions in market value disappeared when Kwon’s algorithmic stablecoin project, TerraUSD, collapsed in 2022.

While on bail this week pending extradition, Kwon’s associate was already transferred to South Korea. However, the court favored the US claim for extradition despite his Korean citizenship.

Kwon’s team argued Seoul held superior jurisdictional standing under existing legal assistance treaties.

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US prosecutors allege Kwon committed fraud by misrepresenting TerraUSD’s stability and sustainability for investors.

The Justice Department aims to hold him criminally accountable for masquerading what proved to be a fatally flawed venture. South Korea issued an arrest warrant for Kwon in September, citing a violation of capital markets law.

However, American authorities seemingly persuaded Montenegro that their case takes precedence, perhaps given Terra’s enormous US customer base.

Vignesh Karunanidhi

Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.

Vignesh Karunanidhi
Milk Road Writer
Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.