PODGORICA, Montenegro — Montenegro has officially extradited Do Kwon, the co-founder of Terraform Labs, to the United States as of December 31, 2023. Kwon is accused of deceiving investors amid the notorious collapse of the TerraUSD stablecoin, leading to losses estimated at around $40 billion.

The extradition follows a complex legal journey that spanned over 18 months, with considerable pressure from the U.S. and South Korea, both seeking Kwon for his alleged role in orchestrating fraud related to Terraform Labs' digital currencies, TerraUSD and Luna (AP News). Despite the extradition to the U.S., Kwon's lawyers have indicated plans to challenge the legal proceedings in Montenegro's constitutional court, citing concerns over international law.

Kwon's arrest occurred in March 2023 at Podgorica Airport, where he was attempting to travel to Dubai with a fake passport (BBC). Following his detention, he was charged with using forged documents and has since fought extradition claims. After the Montenegrin Supreme Court deemed that all legal criteria for U.S. extradition were satisfied, Justice Minister Bojan Bozovic green-lit the transfer just a week ago (SCMP).

Now in the custody of American law enforcement, Kwon faces severe allegations. U.S. prosecutors assert that he played a central role in the multi-billion-dollar fraud that precipitated the catastrophic decline of TerraUSD and caused widespread panic in the cryptocurrency market. On May 9, 2022, in merely 48 hours, TerraUSD plunged more than 99% of its value, triggering a chain reaction that affected countless investors and culminated in a broader crypto market crash (Reuters).

Kwon has consistently denied any wrongdoing, asserting his innocence against the charges brought forth by the Securities and Exchange Commission (SEC) and other solicitation for fraud. Despite his proclamations, this extradition represents a significant step toward accountability for one of the most controversial figures in cryptocurrency history (Montenegro News).

The proceedings against Kwon signal broader scrutiny and regulatory attention toward cryptocurrency and related blockchain projects following a series of high-profile collapses in recent years. Industry observers are keenly watching to see how this extradition may impact the future regulatory landscape for cryptocurrencies (SCMP).

For more information on this developing story, visit Reuters, BBC, SCMP, and AP News.