Court records and official announcements from the US Department of Justice

Montenegro Extradites Do Kwon to US Over $40 Billion Terraform Labs Collapse, Facing SEC Charges

Dec 31, 2024, 02:07 PM

Montenegro has extradited South Korean cryptocurrency entrepreneur Do Kwon to the United States, where he faces criminal charges related to the collapse of his company, Terraform Labs. The extradition was confirmed by Montenegro's interior ministry, which stated that Kwon was handed over to U.S. law enforcement and FBI agents with the assistance of Interpol. Kwon is accused of orchestrating a multi-billion dollar crypto asset securities fraud involving the algorithmic stablecoin TerraUSD and other crypto assets. The collapse of Terraform Labs in 2022 led to a loss of approximately $40 billion for investors and significantly impacted global cryptocurrency markets. Kwon had been detained in Montenegro since March 2023 after attempting to board a flight with a forged passport. Both the U.S. and South Korea sought his extradition, with the U.S. ultimately succeeding. Additionally, the U.S. Securities and Exchange Commission (SEC) has filed charges against Kwon for securities fraud.