Do Kwon Faces US Extradition as Montenegro Justice Minister Makes Final Decision

Montenegro’s Minister of Justice Bojan Božović has signed off on the extradition of Do Kwon to the United States, marking a crucial turning point in the ongoing legal saga of the Terraform Labs co-founder. This decision comes after months of legal battles between the US and South Korea, who both sought Kwon’s extradition.

The ruling follows the Constitutional Court of Montenegro’s rejection of Kwon’s appeal earlier this week. The Ministry of Justice explained that their choice was based on several key factors, including how serious the crimes were, where they happened, and when each country asked for extradition.

The Complex Path to Extraditing Do Kwon

The road to this decision has been far from smooth. After his arrest in Montenegro in March 2023 for using fake travel documents, Kwon became the center of an international tug-of-war. The High Court of Podgorica initially approved sending him to the US in November 2023 but left the final choice to Montenegro’s justice minister.

The case took several unexpected turns. In May 2024, Kwon’s lawyers successfully appealed the extradition order. By August, Montenegro’s Appellate Court said he should go to South Korea instead. But in September, court officials determined Kwon could be sent to either country, putting the ball back in the justice minister’s court.

The extradition to the US means Kwon will face serious charges related to the collapse of Terra’s UST stablecoin and LUNA cryptocurrency in 2022. This crash caused billions in investor losses and triggered a chain reaction of failures across the crypto industry, including the fall of FTX.

The US legal system allows courts to give separate sentences for each proven crime, potentially resulting in a longer total sentence compared to South Korea, where financial crime sentences typically max out at 30-40 years.

The case has even sparked political controversy in Montenegro. Former Justice Minister Andrej Milovic has accused Prime Minister Milojko Spajić of trying to influence the decision in favor of South Korea, claiming financial connections with Kwon.

This development comes as regulators continue to crack down on crypto industry violations. Just last week, the SEC reached a $123 million settlement with Jump Crypto’s subsidiary, Tai Mo Shan, over allegations of selling LUNA as an unregistered security.

With the justice minister’s signature now in place, this appears to be the final chapter in Montenegro’s part of the Do Kwon story, though the legal proceedings are far from over.