Terraform Labs' Do Kwon set to be extradited to the U.S., according to local media

Terraform Labs co-founder Do Kwon will be headed to the U.S. where he faces fraud charges linked to devastating losses for U.S. investors tied to an algorithmic stablecoin. 

The High Court in Montenegro made the decision to extradite Kwon to the U.S. and rejected South Korea's request to extradite the former executive, according to local media site Pobjeda.

Late last year, a court in Podgorica approved Kwon's extradition. Following his arrest in Montenegro in March 2023 for using a counterfeit passport while attempting to exit the country, Kwon had agreed to be extradited to South Korea. 

In June, a Montenegro court sentenced him to four months in prison after finding him guilty of document forgery. Kwon appealed that court decision, lost the appeal, and was finally sentenced to four months in jail. 

Charges

Kwon faces civil charges from the Securities and Exchange Commission who say he and his company raised billions from investors by “offering and selling an inter-connected suite of crypto asset securities, many in unregistered transactions.”

The jury trial on fraud claims had been pushed back to late March from Jan. 29 after Kwon's lawyer said he was facing challenges to get him out of Montenegro.