Do Kwon to be Extradited to the United States: Report

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Julia Smith

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Julia Smith

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Julia is an experienced editor with a passion for covering a wide variety of beats. She loves all things politics and regularly covers regulatory updates on emerging technology here for Crypto News.

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December 6, 2023

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Terraform Labs’ founder, Do Kwon, is set to be extradited to the U.S. following months of speculation, according to a report from the Wall Street Journal released Thursday.

“Not excluding that kind of possibility”

Kwon has been imprisoned in Montenegro since authorities caught the international fugitive attempting to fly out of the country last March. Both the U.S. and Kwon’s native country of South Korea have been battling for his extradition to face fraud-related charges in each respective nation since.

Following approval of Kwon’s extradition in a Montenegrin court last month, sources told the Wall Street Journal that Kwon’s fate lies in the hands of Justice Minister Andrej Milovic. While Milovic has yet to disclose his decision on where to extradite the founder of Terraform Labs, sources allege Milovic told the U.S. ambassador to Montenegro, Judy Rising Reink, that he plans on sending Kwon to her country,

However, Milovic refused to comment on the matter, saying only that “the public will be informed of the decision in a timely manner.”

Goran Rodic, Kwon’s Montenegrin lawyer, refused to confirm the decision but said he was “not excluding that kind of possibility.”

A fugitive on the run

If and when Kwon arrives in the U.S., he faces eight criminal counts of fraud, including commodities fraud, securities fraud, and wire fraud.

Kwon is also wanted for numerous securities-law violations in connection with the May 2022 collapse of Terra and Luna. The crash of the Kwon’s digital tokens cost the crypto market an estimated $40 million overall.

By September 2022, South Korea issued a warrant for the sham crypto tycoon’s arrest. Kwon, however, was nowhere to be found.

Kwon traversed Europe and Asia while on the lam, hiding out in Serbia and Dubai before ultimately landing in Montenegro. During this time, the U.S. Securities and Exchange Commission filed a lawsuit against Kwon, citing fraud.

Kwon and his alleged co-conspirator, Terraform Labs’ CFO Han Chang-Joon, were finally caught when the duo attempted to board a jet to Dubai with Belgian and Costa Rican passports.

What to expect going forward

Last month, Kwon’s attempt to appeal to his document forgery case was rejected by a High Court in Montenegro. 

With Kwon deemed a flight risk, the disgraced crypto founder is currently being housed at Spuž Prison near the capital city of Podgorica.

Milovic is expected to wait to announce his decision pending until it’s solidified that Kwon will not attempt a final appeal.

Image courtesy of: Terra / YouTube