Montenegro Discloses Next Step In Terra Luna Do Kwon’s Extradition

According to Montenegrin media reports, Do Kwon’s extradition process may soon conclude, with a decision expected by Sunday, Oct. 19.

On October 17, Minister of Justice Bojan Bozovic confirmed that the government chose the destination for extraditing the Terraform Labs co-founder, whom both the US and South Korea want on charges related to cryptocurrency fraud.

The minister indicated that he could soon sign the necessary documentation for Kwon’s extradition – by the end of the week.  However, the exact country to which he will go remains unknown.

Do Kwon’s Fate to Be Decided by Sunday

According to local media, the government of Montenegro is working on completing the procedures for the extradition of Do Kwon. The Minister will come with the decisiono by no later than Sunday, October 19.

Justice Minister Bojan Bozovic suggested on October 17 that he will finish the documents for Kwon’s extradition by Sunday. However, he didn’t specify the country to which he will send the infamous CEO.

Kwon has numerous criminal charges filed against him in the US and South Korea. He was staying as a prisoner in Montenegro since March following his arrest for traveling under fake documents.

His extradition will mark a major milestone in resolving the legal fallout from Terra’s stablecoin implosion, which destroyed billions of dollars in investor money. Still, Terra Luna Classic price has been trending upward since July, despite a market-wide crash on August 5. 

Do Kwon, arrested in Podgorica in March 2023, faces charges in South Korea, Singapore, and the US. All countries have requested extradition from Montenegro.

Crypto legal expert David Lespernce told Coingape that both Korea and the US have valid basis for their requests and in international extradition law there is not a system for predetermining priority in competing petitions.

“Therefore, the ultimate decision as to where Do Kwon will be first sent will be a political one rather than a legal one”, he explained.

“It Would Be Easier if the Court Had Decided”: Minister on Do Kwon

In September 2023, Interpol called for a red notice against Do Kwon regarding the $40 billion collapse in May 2022 of the Terra Luna and TerraUSD cryptocurrencies.

On 19 September, the Supreme Court of Montenegro ruled that all conditions for Do Kwon’s extradition to criminal proceedings in South Korea and the US are fine by law, thereby allowing the Minister of Justice to decide on the extradition permit.

Bozovic stated:

“On this issue, as Minister of Justice, I have nothing more to comment on after the decision of the Supreme Court… It would have been easier for me if it hadn’t been like this and the court had decided which country he should be extradited to. On the other hand, when the court leaves it to us to decide, I must act accordingly.”

$4.47B Settlement for Terraform

Do Kwon, co-founder of Terraform Labs, was caught in Montenegro after allegedly hiding in Serbia and attempting to travel to the Middle East using fake documents. Following his arrest, Kwon was found guilty of forgery and served a six-month prison sentence.

His case became the subject of a legal tug-of-war, with both the US and South Korea vying for extradition rights. Each country initially secured favorable rulings, but subsequent judicial decisions overturned these outcomes, resulting in an extended legal battle. Eventually, Kwon went out from prison and came under supervision while Montenegro’s Ministry of Justice deliberated on the final extradition decision.

Meanwhile, Terraform Labs reached a substantial $4.47 billion settlement with the US Securities and Exchange Commission (SEC) to address allegations related to the company’s operations. Terra agreed to wind down its business and liquidate its assets as part of the settlement.