Do Kwon’s Extradition Delayed Once More

By Aaron Feuerstein March 07, 2024 In Cryptocurrency, SEC, Terraform
  • The Montenegrin Appeals Court has annulled a previous extradition decision for Do Kwon to the US.
  • Citing procedural violations and inconsistencies in handling extradition requests, the decision delays potential trials in the US or South Korea.
  • The SEC has charged Terraform Labs and Do Kwon with a multi-billion-dollar fraud involving unregistered sales of crypto assets, including Terra USD.

Another surprise twist in the saga that is the Do Kwon extradition epic: As per the latest, Do Kwon is apparently not being deported to the US—yet.

After initial reports Kwon would be deported to the United States, the order was scrapped by the courts over procedural shortcomings.

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Subsequently, earlier in February, the Montenegrin High Court in Podgorica ruled that the former CEO of Terraform Labs had to be handed over to US authorities. Kwon is facing fraud charges in relation to the failure of the Terra ecosystem.


In the most recent decision, the Appeals Court of Montenegro now returned the case to the first-instance court for a re-trial and decision.

As per court documents, this is due to significant procedural violations, particularly concerning the order of received extradition requests from the USA and South Korea.

The court found inconsistencies in the first-instance court’s reasoning regarding the timeline and authenticity of the requests, leading to the annulment of the extradition decision and a mandate for a new examination of the case.

This development does not preclude Kwon from eventually being tried in either the US or his native South Korea, but it does mean the process will face further delays.

SEC Accuses Kwon of ‘Defrauding Investors in Crypto Schemes’

The US Securities and Exchange Commission (SEC) charged Terraform Labs and Do Kwon with conducting a multi-billion-dollar fraud involving an algorithmic stablecoin and other crypto assets.

Allegedly, from April 2018 to May 2022, they raised funds through unregistered sales of crypto assets, including “mAssets” and Terra USD (UST), misleading investors about their value and stability.

Terraform and Kwon are accused of making false claims about the assets’ potential for profit, notably through high-interest returns and misleading statements about UST’s stability, which collapsed in May 2022. The SEC asserts Terraform and Kwon failed to provide necessary disclosures, committing fraud and causing significant investor losses.

As alleged in our complaint, the Terraform ecosystem was neither decentralized, nor finance. It was simply a fraud propped up by a so-called algorithmic “stablecoin” – the price of which was controlled by the defendants, not any code.

Gurbir S. Grewal, Director of the SEC’s Division of Enforcement

The regulator said in a statement the case emphasises the commitment to enforcing securities laws in the crypto space, highlighting the actions’ impact on both retail and institutional investors and the broader crypto market.

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Han Chang-Joon, Kwon’s former CFO who had also fled to Montenegro, was deported to South Korea after they both spent several months in a Montenegrin prison following their arrest when trying to leave the country on a private jet with fake passports.

Aaron Feuerstein

Aaron Feuerstein

Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.

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