Montenegro Extradites the "Crypto King" to the United States

Sentiment status: Positive

South Korean magnate Do Kwon, accused of fraud, criminal association, and other crimes, has been handed over to FBI agents.

Montenegrin police officers escort South Korean magnate Do Kwon, founder of Terraform Labs, following his arrest in Podgorica, the capital.

Montenegro has extradited South Korean Do Kwon, known as the "Crypto King", to the United States, where he is wanted for fraud, as well as by South Korean authorities, according to a statement released by the Balkan country’s police on Tuesday (12/31/2024).

Justice Minister Bojan Bozovic signed the extradition resolution today, transferring Do Kwon to the United States to face charges of fraud, criminal association, and other crimes.

Montenegrin authorities handed him over to FBI agents in accordance with the Ministry of Justice's resolution, allowing the legal proceedings in the U.S. to move forward.

The extradition of Do Kwon, founder of Terraform Labs, was requested by both South Korea and the United States on suspicion of defrauding investors in the cryptocurrencies "Luna" and "Terra" for a total of at least $40 billion.

Massive Fraud in the U.S. and South Korea

South Korean authorities accuse Do Kwon of orchestrating a pyramid scheme and had been seeking his extradition since September 2022 on suspicions of fraud.

In February 2024, the U.S. Securities and Exchange Commission (SEC) filed charges against Terraform Labs, its CEO, and majority shareholder, Do Kwon, for the sudden collapse of their cryptocurrencies TerraUSD and Luna in May 2022.

The SEC alleges that Do Kwon and Terraform Labs orchestrated a multi-billion-dollar fraud that, in part, took place in the United States between 2018 and 2022.

Do Kwon, 33, was arrested in late March 2023 at Podgorica Airport on a warrant issued by South Korea. On June 16, 2023, he was convicted of passport forgery while attempting to travel to Dubai on a private flight departing from Podgorica.

For this crime, Do Kwon served a four-month prison sentence near Podgorica and was later transferred to the Foreigners’ Reception Center near Montenegro's capital, where he awaited extradition.