Montenegro To Extradite Crypto Entrepreneur Do Kwon To US

Belgrade, (APP - UrduPoint / Pakistan Point News - 27th Dec, 2024) Montenegro will extradite to the United States South Korean cryptocurrency specialist Do Kwon, who is also wanted by Seoul for the multi-billion-dollar bankruptcy of his company, Terraform Labs, the Montenegrin Justice Ministry announced on Friday.

For months, Seoul and Washington have been seeking the South Korean's extradition for his suspected role in a fraud linked to his company's failure, which wiped out about $40 billion of investors' money and shook global crypto markets.

"The Minister of Justice, Bojan Bozovic, issued a decision approving the extradition of the accused, Kwon Do Hyung, to the United States of America," the Ministry of Justice announced, following a year and a half of dizzying court rulings and subsequent reversals regarding his extradition.

"It was concluded that the majority of the criteria prescribed by law favour the extradition request from the competent authorities of the United States of America," the Ministry added in a statement.

The crypto tycoon was arrested in March 2023 at the airport in Podgorica, the Montenegrin capital, while preparing to board a flight to Dubai, in possession of a fake Costa Rican passport.

Before his arrest, he had been on the run for months, fleeing South Korea and later Singapore, before his company went bankrupt in 2022.

After a series of rulings by the Montenegrin courts, approving and then cancelling extradition requests, the country's Constitutional Court lifted the final hurdle on Tuesday.

"The Constitutional Court concluded that the procedure preceding the constitutional review was conducted in a manner that ensured the appellant's right to a fair trial and did not raise concerns about a possible violation of the right to family life," states the decision published on the Constitutional Court's website on December 24th.

The court also emphasized that Kwon, during the hearing, "personally consented to expedited extradition to both the Republic of South Korea and the United States."

Montenegro has already deported Kwon's business partner -- identified only by his initials J.C.H. -- to South Korea in early February.

Terraform Labs created a cryptocurrency called TerraUSD that was marketed as a "stablecoin", a token that is pegged to stable assets such as the US Dollar to prevent drastic fluctuations.

Do Kwon successfully marketed them as the next big thing in crypto, attracting billions in investments and global hype.

Media reports in South Korea described him as a "genius".

But despite billions in investments, TerraUSD and its sister token Luna went into a death spiral in May 2022.

Experts said Kwon had set up a glorified Ponzi scheme, in which many investors lost their life savings.

He left South Korea before the crash and spent months on the run.

In January, Terraform Labs officially sought bankruptcy protection in the United States.

The bankruptcy filing would allow Terraform "to execute on its business plan while navigating ongoing legal proceedings, including representative litigation pending in Singapore and US litigation involving the Securities and Exchange Commission", the company said in a statement.

It said it also intended to "meet all financial obligations to employees and vendors".

Cryptocurrencies have come under increasing scrutiny from regulators after a string of controversies in recent years, including the high-profile collapse of the exchange FTX.