Terraform Labs' Do Kwon faces extradition in Montenegro

Finance

Published: 26 Nov. 2023, 16:00 Updated: 26 Nov. 2023, 16:58

Terraform Labs' Do Kwon faces extradition in Montenegro

This photo, taken June 16, 2023, which was provided by the Montenegro-based daily newspaper Vijesti, shows Korean crypto fugitive Do Kwon heading to the district court in Podgorica, the capital city of Montenegro, to attend his trial on charges of using a fake passport. [Yonhap]

A Montenegro court has granted the extradition of Do Kwon, the co-founder of the cryptocurrency firm Terraform Labs, to either Korea or the United States.

Kwon, 32, who was behind cryptocurrencies that suffered a multibillion-dollar crash last year, was arrested in the capital city of Podgorica in March after months on the run with forged passports.

The Basic Court in Podgorica announced on its website Friday local time that the final decision on the extradition will be made by the Montenegrin justice minister after Kwon serves a four-month prison sentence in Montenegro for document forgery.

The disgraced entrepreneur had been on the run after fleeing Korea while under investigation in connection with the crash of Terraform Labs' TerraUSD and Luna coins in May of last year, which is estimated to have wiped out nearly 50 trillion won ($38 billion) of market value.

Korean prosecutors have since sought an arrest warrant for Kwon on charges that he deceived investors and violated the Capital Markets Act.

Interpol also issued a red notice, which is used for the most wanted suspects and criminals. Kwon's passport has since been invalidated.

Federal prosecutors in New York have also charged Kwon with fraud.

TerraUSD was designed as a stablecoin, which is a cryptocurrency pegged to more traditional instruments like the U.S. dollar. However, holders of TerraUSD and Luna lost most of their assets after the stablecoin plunged far below its $1 peg.

Yonhap