A Montenegrin appeals court has upheld a decision to extradite South Korean cryptocurrency mogul Do Kwon to his native country. The decision rejects a bid to extradite him to the United States. Kwon, known as "the cryptocurrency king," is the founder of Terraform Labs and was arrested in Montenegro last year. Both South Korea and the U.S. had requested his extradition from Montenegro.
The decision follows a months-long legal saga involving various Montenegrin courts, which have brought and overturned multiple rulings to extradite Kwon either to the U.S. or South Korea. The Montenegrin Appeals Court stated on Thursday that its decision is legally binding. However, it was not immediately clear when Kwon could be extradited.
Kwon was charged in the U.S. with fraud by federal prosecutors in New York over a $40 billion crash of Terraform Labs' cryptocurrency, which devastated retail investors around the world. Kwon and another South Korean were arrested in Montenegro while trying to depart for Dubai, United Arab Emirates, using fake Costa Rican passports. He has served a prison term in Montenegro for using a fake passport.
Kwon and five others connected to Terraform had been wanted on allegations of fraud and financial crimes in relation to the implosion of its digital currencies in May 2022. TerraUSD, designed as a "stablecoin," saw around $40 billion in market value erased for the holders of TerraUSD and its floating sister currency, Luna, after the stablecoin plunged far below its $1 peg.