Montenegro To Extradite Terraform Labs Co-Founder Do Kwon To US, Local Media Report

Updated: 22 February 2024

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Terraform Labs co-founder Do Kwon will be extradited to the US to face fraud charges, according to a Feb. 21 report by Montenegrin news outlet Pobjeda.

The High Court in Podgorica denied Kwon’s request to be extradited to South Korea rather than the US, it reported.

US and South Korean authorities have been fighting to extradite Kwon and charge him with fraud in connection with Terra’s collapse in May 2022. The U.S. Attorney’s Office has already charged the co-founder with eight criminal counts shortly after he was arrested in Montenegro in March last year.

The U.S. Securities and Exchange Commission (SEC) has started a civil case against Kwon and Terraform as well, with the date for the trial set for Mar. 25. This is after both Kwon and Terra were accused of running a multi-billion dollar crypto asset securities fraud in connection with Terra’s implosion.

Bullish news! DO KWON DO coming to the United States. 🐂🇺🇸 pic.twitter.com/mW1TX3W6kK

— fity.eth (@Fityeth) February 21, 2024

Terraform Labs Files For Chapter 11 Bankruptcy Protection

Terraform Labs filed for Chapter 11 bankruptcy protection in Delaware in a Jan. 21 filing that estimated the company had between $100 million and $500 million in both assets and liabilities.

It said it plans to settle debts owed to employees and vendors without requiring additional financing. By filing for bankruptcy, Terra aims to navigate ongoing legal proceedings in both the US and Singapore.

Kwon went missing after the collapse of Terra in May 2022, but was arrested by Montenegrin authorities in March last year for using fake travel documents. He was later sentenced to four months in prison and has faced extradition proceedings while in custody.