Montenegro Approves Extradition of Crypto King Do Kwon to the U.S.
PODGORICA - In a significant legal development, Montenegro announced on December 27 that it would extradite South Korean cryptocurrency entrepreneur Hyeong Do Kwon, infamously known as the 'Crypto King', to the United States. The decision comes after a protracted multinational legal battle, during which Do Kwon was sought by both the U.S. and South Korea, and also faces potential legal action in Singapore.
The Montenegrin courts had previously issued at least eight often contradictory rulings regarding Do Kwon's fate, demonstrating the complexities of his case. A notable turning point was in September when the Montenegrin Supreme Court ruled that Do Kwon could be sent to either the United States or South Korea, leaving the ultimate decision to Justice Minister Bojan Bozovic.
On December 24, Do Kwon's final appeal against extradition was dismissed by Montenegro's Constitutional Court. Following this, the Justice Ministry confirmed that the U.S. request had satisfied the necessary criteria for extradition approval. These criteria included the seriousness of the alleged crimes, the order of extradition requests from the involved countries, and the citizenship of the accused.
Do Kwon, the former CEO and co-founder of Terraform Labs, is wanted by U.S. and South Korean authorities due to his alleged involvement in capital market and securities fraud that reportedly involved assets worth approximately $40 billion. It is reported that he was arrested alongside business partner Chang Joon in March 2023 at Podgorica airport while attempting to board a flight to Dubai with purportedly forged passports. Following their arrest, both individuals received four-month prison sentences related to the passport charges.
While Chang Joon, who was only pursued by South Korea, was extradited to that country on February 5, Do Kwon faced further legal hurdles. After serving his sentence, he was placed in a shelter for foreigners near Podgorica while awaiting extradition.
In October, Do Kwon argued that the charges against him in South Korea were illegitimate and politically motivated. Despite his ongoing legal challenges, a trial against him was conducted in absentia in the United States. On April 5, a New York jury found him and Terraform Labs liable for civil fraud, agreeing with the U.S. Securities and Exchange Commission (SEC) that they had misled investors. Subsequently, Terraform Labs consented to pay approximately $4.5 billion in a civil settlement, while Do Kwon was ordered to pay $204 million.
In light of the verdict, a spokesperson for Terraform stated, 'We continue to maintain that the SEC does not have the legal authority to bring this case at all, and that the company is weighing its options.' As the legal saga continues, all eyes will be on Montenegro's extradition process and its implications for the future of Hyeong Do Kwon, the man at the center of one of cryptocurrency's most consequential scandals.
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