Terraform Labs Founder Faces Justice: Do Kwon’s Extradition Confirmed!

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South Korea is set to extradite Do Kwon, the co-founder of the collapsed Terra platform. The Appellate Court of Montenegro has issued a ruling confirming the decision earlier taken by the High Court of Podgorica to send him to his Native country, Instead of the U.S. Let’s explore the case development for Kwon’s Extradition.

The Battle for Kwon’s Extradition

After a long legal battle and competition between the U.S. and South Korea, the Montenegro Appellate Court has finally ruled in the favor of South Korea on August 1. The court’s decision will send Kwon to his home country, where he will face charges related to the $40 billion collapse of Terra. As per the court ruling, there is no room for appeal now. Kwon;s lawyer, Goran Rodic mentions

The Rise of Legal Troubles

In April 2024, a U.S. court found Terraform labs and its co-founder Do Kwon guilty of fraud. The SEC accused them of misleading the investors and mishandling funds. Terraform lab settled with the SEC for $4.47 Billion including fines and penalties. Kwon’s home country South Korea and the U.S. both have been seeking his extradition and want to try him for the $40 Billion implosion of the Terra ecosystem in May 2022. 

In September 2022, Interpol issued a red notice for him, and authorities arrested him six months later while he tried to use a fake passport to fly to Dubai. Montenegro jailed him and sentenced him to four months for using falsified documents. Since then the U.S. and South Korea have been competing to extradite him.

On Thursday, the court ruling rejected the efforts of the United States. According to his lawyer, the Interpol will assist Montenegro to arrange Kwon’s extradition to South Korea. They will try to make this transfer as soon as possible. 

Kwon’s Wife Gets Seized Property

In all third-party objection lawsuits against the South Korean government, the Seoul Southern District Court has ruled in favor of Do Kwon’s wife. On June 19, the court classified the property in question as Kwon’s wife’s property, acquired during their marriage. The South Korean government seized these properties as part of a substantial $177 million asset preservation order against Do Kwon.

Ties to Montenegrin Politics

Claims have also surfaced about Montenegrin Prime Minister Milojko Spajic’s alleged connection to Terraform Labs. Reports suggest Spajic was an early investor. According to sources, in 2018, the politician invested $75,000 in Terraform Labs and received 750,000 Luna tokens in return. Spajic, however, denies these claims, saying that the company he worked for made this investment.