The Ministry of Justice in Montenegro has announced that Bojan Bozovic, the Justice Minister, has given the directive to extradite Do Kwon, the co-founder of Terraform Labs. Do Kwon is also wanted by South Korea and will be extradited to the United States.
Kwon, a South Korean citizen, previously served as the CEO of Terraform Labs, a South Korea-based company. Terraform Labs is known for creating the stablecoin TrraUSD, which faced a major setback in May 2022, causing significant turbulence in the cryptocurrency markets.
In March 2023, he was apprehended when he tried to exit Montenegro.
The justice ministry has announced that Do Kwon will be extradited to the United States after the Supreme Court confirmed that all necessary legal requirements had been met. Bozovic, the ministry’s representative, signed a decree in favor of the US request, citing the fulfillment of most legal criteria.
Kwon denies any wrongdoing and is also facing related criminal charges in the US.
According to the Pobjeda newspaper, Bozovic’s lawyers claimed that he had violated their client’s basic human rights, including the right to defense and legal remedy, by refusing to deliver his decision on their request.
In February 2023, the Securities and Exchange Commission filed a lawsuit against Kwon and his company, Terraform Labs. The lawsuit revolves around the TerraUSD and Luna cryptocurrencies, which are alleged to have resulted in approximately $40 billion in losses within the crypto markets.
A stablecoin is a type of digital asset that is designed to maintain a stable price. Unlike other cryptocurrencies, stablecoins are typically pegged to a specific currency and aim to have less volatility.
Terraform and Kwon were accused by the SEC of misleading investors regarding the stability of TerraUSD and the utilization of the Terraform blockchain by a prominent Korean mobile payment app for transaction settlements.