Extradition of Terraform Labs Co-Founder: A Global Legal Battle

Montenegrin Justice Minister Bojan Bozovic approved the extradition of Terraform Labs co-founder Do Kwon to the U.S., as opposed to South Korea. Kwon, arrested for involvement in the collapse of the TerraUSD stablecoin, faces significant legal challenges and alleged deception causing $40 billion losses in crypto markets.

In a major decision, Montenegrin Justice Minister Bojan Bozovic has ordered the extradition of Terraform Labs co-founder Do Kwon to the United States. The move comes amid competing extradition requests, with South Korea also seeking Kwon's extradition for his involvement in the failed TerraUSD stablecoin platform.

Do Kwon, a South Korean national, was detained in March 2023 as he attempted to leave Montenegro. His company, Terraform Labs, is notorious for the TerraUSD collapse, which disrupted cryptocurrency markets in May 2022. The Montenegro court's ruling favored the U.S. due to the fulfillment of legal criteria, resulting in Bozovic signing a decree sending Kwon to the U.S.

Kwon has denied any wrongdoing but faces serious charges, including a lawsuit from the U.S. Securities and Exchange Commission (SEC). The SEC claims Terraform Labs and Kwon misled investors about the stability of their cryptocurrencies, reportedly responsible for $40 billion in market losses. Despite legal objections from Kwon's lawyers, including alleged rights violations, his extradition advances amid ongoing global scrutiny.

(With inputs from agencies.)