BELGRADE, Dec 28, (V7N) — Montenegro has announced its decision to extradite South Korean cryptocurrency mogul Do Kwon to the United States, where he is wanted for his role in the catastrophic collapse of Terraform Labs, a scandal that erased $40 billion of investors' money and sent shockwaves through global crypto markets.

The announcement, made by Montenegro's Justice Minister Bojan Bozovic, marks the end of a protracted legal battle over Kwon’s extradition, which has been contested by both South Korea and the United States.

Justice Ministry Statement: Bozovic stated that the decision was made after concluding that the majority of legal criteria favored the U.S. extradition request.

Fake Passport and Arrest: Kwon was arrested in March 2023 in Podgorica with a forged Costa Rican passport while attempting to flee to Dubai.

Lawyer’s Appeal: Kwon’s lawyers criticized the decision, citing violations of European conventions on extradition. They plan to appeal to Montenegro's Constitutional Court and the European Court of Human Rights.

Precedent Set: Earlier this year, Montenegro deported Kwon’s business partner, J.C.H., to South Korea.

Kwon’s company, Terraform Labs, marketed TerraUSD as a stablecoin—a cryptocurrency designed to maintain a fixed value by pegging it to stable assets like the U.S. dollar. However, the system unraveled in May 2022, sending both TerraUSD and its sister token Luna into a "death spiral."

Experts have since described the project as a Ponzi scheme, leaving many investors devastated. Following the collapse, Kwon fled South Korea and evaded authorities for months before his arrest in Montenegro.

The downfall of Terraform Labs has heightened regulatory scrutiny of cryptocurrencies. The high-profile implosion of FTX and other crypto scandals have intensified calls for stricter oversight in the volatile market.

While the United States has secured the extradition, Kwon’s legal team is pushing for a delay, arguing that his rights to a fair trial and family life were not fully considered. The legal battle could stretch further if international courts intervene.

END/WD/RH/