Terraform Labs’ Do Kwon Extradition Decision Nears: U.S. or South Korea?

The curtain is about to fall on Do Kwon’s dramatic legal saga. As the clock ticks down to Sunday, October 19th, Montenegrin authorities are set to announce where the co-founder of Terraform Labs will spend the rest of his days.

According to Bojan Bozovic, Montenegro’s Minister of Justice, the government has chosen where Kwon will be sent, though they haven’t revealed if it will be the U.S. or South Korea—both countries want him extradited.

This week will be crucial for Kwon, so let’s take a look at what could happen next.

Final Documents to Be Signed This Week

On October 17, Bozovic mentioned that the last documents needed for Kwon’s extradition might be signed by the end of this week. However, he didn’t share which country will receive him. Both South Korea and the U.S. have accused Kwon of multiple counts of crypto fraud, all linked to the collapse of the Terra ecosystem, which caused massive financial losses for investors worldwide.

Montenegro’s Supreme Court has already ruled that Kwon can be extradited, but the final decision on where he’ll go lies with Montenegrin authorities.

Bozovic admitted, “It would have been easier for me if the court had decided,” pointing out the tough nature of the decision.

The Collapse of Terra and Kwon’s Downfall

Kwon’s troubles began in May 2022 when Terra’s algorithmic stablecoin, TerraUSD, lost its peg to the U.S. dollar. The crash that followed wiped out billions from the TerraUSD and Luna markets, leaving investors with significant losses. Kwon has since been facing fraud charges from South Korea, the United States, and Singapore.

After evading authorities for months—reportedly hiding in Serbia—Kwon was arrested in Montenegro in March 2023, attempting to leave the country using fake travel documents. He was convicted of forgery and served a six-month sentence. Since then, he’s remained in custody while the extradition process unfolded.

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Decision Time for Montenegro

Although Montenegro’s Supreme Court ruled in September 2023 that Kwon could be extradited, it did not specify which country he should be sent to. That final decision now rests with the Montenegrin government.

As the decision nears, both the U.S. and South Korea are eager to put Kwon on trial for his role in the Terra collapse. The outcome is expected soon, with Kwon likely to face trial in one of the two countries.

Is justice finally coming for investors? Let us know your thoughts.