Cryptocurrency entrepreneur Do Kwon has been approved for extradition from Montenegro to South Korea by the appeals court in Montenegro. This decision comes as a result of allegations of fraud linked to the collapse of his cryptocurrency company, Terra, which resulted in the loss of around $40 billion of investors’ money and shook global crypto markets. Kwon, whose real name is Kwon Do-hyung, had been on the run for months before being arrested in Montenegro in March last year for using a fake passport.
The Montenegrin appeals court rejected the appeal made by Kwon’s lawyers and upheld the extradition order issued by the Podgorica High Court. However, no specific timeline for the extradition transfer has been mentioned. This decision follows a previous court’s ruling against extraditing Do Kwon to the United States.
Kwon’s business partner, identified by his initials J.C.H., has already been deported to South Korea in early February, highlighting Montenegro’s cooperation with South Korea in this matter. The collapse of TerraUSD, a stablecoin, and its sister token Luna in May 2022 resulted in significant financial losses for many investors. Experts have described the collapse as a glorified Ponzi scheme set up by Kwon, which caused numerous investors to lose their life savings.
The news text also mentions the increasing scrutiny faced by cryptocurrencies, including the high-profile collapse of the exchange FTX, as regulators have become more vigilant in light of various controversies in the past year. This highlights the need for stricter regulations in the cryptocurrency sector to protect investors and ensure the legitimacy of these digital assets.