Montenegro’s Justice Minister, Marko Kovač, has confirmed ongoing discussions with the U.S. Securities and Exchange Commission (SEC) regarding the extradition of Do Kwon, the co-founder of Terraform Labs. Kwon, who was arrested in Montenegro in March 2023, is facing multiple charges related to securities fraud in connection with the collapse of the Terra (LUNA) and TerraUSD (UST) cryptocurrencies.
Minister Kovač stated that Montenegro is cooperating closely with international authorities to address the legal complexities surrounding Kwon’s extradition. “We are in active communication with the SEC and other relevant agencies to ensure that the legal processes are followed correctly and efficiently,” Kovač said.
Kwon’s arrest came after months of international manhunt operations, with multiple jurisdictions seeking his custody. The SEC has been particularly keen on extraditing Kwon to face charges in the United States, where he is accused of orchestrating a multi-billion dollar crypto fraud scheme that led to substantial investor losses.
The Terra ecosystem’s dramatic collapse in 2022, which saw the value of its tokens plummet, has led to significant legal scrutiny and numerous lawsuits. The SEC’s charges against Kwon include allegations of misleading investors and operating an unregistered securities offering. Kwon has consistently denied any wrongdoing, asserting that the collapse was due to market forces beyond his control.
Minister Kovač highlighted Montenegro’s commitment to upholding international law and facilitating justice. “Our objective is to ensure that Mr. Kwon faces the charges against him in a manner that is fair and just, respecting both Montenegrin and international legal standards,” he added.
The extradition process is expected to be complex, involving multiple legal frameworks and diplomatic negotiations. If extradited to the U.S., Kwon will likely face a high-profile trial that could set significant precedents for the regulation and oversight of the cryptocurrency industry.
Montenegro’s involvement in the case underscores its growing role in international legal cooperation and the global effort to tackle financial crimes involving digital assets. The outcome of Kwon’s case will be closely watched by regulators, legal experts, and the broader crypto community, as it could have far-reaching implications for the future of crypto regulation and enforcement.
