Court Orders Terraform Founder Do Kwon to Be Extradited to South Korea, Not U.S. 

A federal court in Montenegro has ruled that Do Kwon, the founder of the bankrupt crypto project Terraform Labs, would be extradited to his home country, South Korea. 

Notably, Kwon would face fraud charges in South Korea instead of the United States, where the court had previously ordered him to be extradited.  

New Twist in Kwon’s Legal Woes 

The legal tussle involving Kwon has continued to take different twists. Last year, Kwon, along with his business partner Han Chang-joon, was arrested at Podgorica Airport in Montenegro’s capital. 

Following his arrest, authorities in the United States and South Korea have been at loggerheads over Kwon’s extradition. At first, a Montenegro High court ruled that Kwon should be extradited to the U.S. However, the Terra founder won a reprieve in an Appellate court last week, with the panel of judges finding massive violations in the case’s legal procedures.  

After the case was remanded, the High Court ordered that Kwon be extradited to South Korea, his native country. 

Commenting on the development, Kwon’s lawyer, Goran Rodic, told DL News that he and his client would consider appealing the decision. 

Kwon Fled After Terra Ecosystem Collapse 

Kwon’s legal woes remain one of the most controversial cases in the global crypto sector. Following the collapse of the Terra network, which saw over $60 billion wiped off the market, Kwon went into hiding. Kwon and Chang-joon ran to different cities before settling down in Serbia. 

While in Serbia, Chang-joon acquired a flat in Belgrade, Serbia, which was later confiscated by local authorities. They fled to Montenegro and subsequently attempted to move to Dubai from there. 

However, Chang-joon and Kwon ran out of luck. They were arrested in March 2023 Montenegro with fake Costa Rican passports. While Kwon was still in Montenegro prison waiting for his extradition issue to be resolved, Chang-joon was repatriated to South Korea in February. 

If U.S. authorities and Kwon’s lawyer do not appeal the recent High Court decision, the Terra founder will soon join his business associate in South Korea. With Kwon set to be extradited to Korea, legal experts speculate that he could face up to 40 years in prison. 

Terraform Labs File For Bankruptcy 

Meanwhile, Terraform Labs officially filed for Chapter 11 bankruptcy in the United States in January 2024. According to the bankruptcy filing, the company estimated that its estimated assets and liabilities were valued within the ranges of $100 million and $500 million. 

Furthermore, Terraform Labs emphasized that it will not seek additional funds to pay its creditors and employees throughout the bankruptcy proceeding.