Terra’s Do Kwon to Be Extradited to the US on Fraud Charges, Minister Confirms

Do Kwon, the founder of the failed Terra blockchain ecosystem, is set to be extradited to the United States from Montenegro, not to his native South Korea, according to a statement from the Montenegrin Minister of Justice, Bojan Božović.

On Friday, the Department of Justice in Montenegro announced its decision to approve the US prosecutors’ request to bring Kwon to New York to face fraud charges. The statement clarified that “most of the criteria provided by the law apply to the request for extradition by the competent authorities of the United States of America.” Bloomberg News was the first to report on the development.

It remains unclear when the extradition will occur. Kwon, who has maintained his innocence, still has potential legal options to appeal the decision.

A Shift in Legal Momentum
For months, both the United States and South Korea have sought Kwon’s extradition from Montenegro. In August, a Montenegrin appellate court initially ruled in favor of South Korea. However, the latest decision shows that the Southern District of New York—known for prosecuting high-profile financial cases, including Sam Bankman-Fried—succeeded in persuading Montenegrin authorities to prioritize their request.

Despite this update, the extradition process remains fluid. Legal confusion persists between Montenegrin courts and the Ministry of Justice, leaving the possibility that Kwon’s destination could shift again.

Background on Kwon’s Capture
Do Kwon was arrested in March 2023 at Podgorica Airport alongside an associate. Both men were traveling with forged Costa Rican passports and attempting to board a private jet bound for Dubai.

Following the collapse of the Terra blockchain in May 2022, which wiped out billions in investor funds, Kwon became the subject of an Interpol red notice. Reports suggest he spent months in hiding in neighboring Serbia before his arrest.

BitGalactic’s Perspective
This development underscores the intensifying global crackdown on crypto fraud. From BitGalactic’s view, the US’s legal victory highlights a clear trend: regulators and law enforcement worldwide are prioritizing investor protection and holding key figures accountable for failures in the blockchain space. However, this case also raises questions about international cooperation in crypto-related crimes, as differing priorities among jurisdictions may delay justice. Regardless of Kwon’s final destination, his trial will serve as a landmark case for crypto accountability in 2025.