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Montenegro says it is extraditing Terraform co-founder Lab Do Kwon to US Reuters


PODGORICA (Reuters) – Montenegro extradited Terraform Labs co-founder Do Kwon to the United States on Tuesday, where he faces charges that he misled investors about the stability of the TerraUSD cryptocurrency and how an app used the Terraform blockchain.

Kwon was handed over to American law enforcement officials and agents of the Federal Bureau of Investigation (FBI) at the Podgorica airport, the Montenegrin Ministry of the Interior announced.

Kwon denies wrongdoing.

The South Korean national is the former CEO of South Korea’s Terraform Labs, the company behind TerraUSD, a “stablecoin” designed to maintain a constant price of $1, which crashed in May 2022, roiling cryptocurrency markets.

Kwon, who was arrested in March 2023 while trying to leave Montenegro, is also wanted by South Korea.

Last week, Montenegrin Justice Minister Bojan Božovic ordered Kwon’s extradition to the United States after the Supreme Court ruled that all legal requirements had been met.

The Justice Department said it has concluded that most of the legal criteria support the US extradition request. His lawyers said they appealed Božović’s decision to the Constitutional Court.

Kwon and his company Terraform Labs were sued by the U.S. Securities and Exchange Commission in February 2023 over the TerraUSD and Luna cryptocurrencies, which authorities say caused about $40 billion in losses in crypto markets.

A stablecoin is a digital asset that aims to maintain a stable price. They are usually tied to a currency, and are intended to be less volatile than other cryptocurrencies.





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