Montenegro extradited Terraform Labs Co-Founder Do Kwon to the United States today (Tuesday), according to the country's interior ministry.

Kwon, a South Korean national, was the CEO of Terraform Labs, the company behind TerraUSD, a stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term that collapsed in May 2022. This collapse triggered major volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term in cryptocurrency markets.

Extradition to US Approved After Legal Proceedings

After 18 months of legal proceedings, Montenegro approved Kwon's extradition to face fraud charges in the US. Kwon was at the center of the cryptocurrency disaster that saw the loss of nearly $40 billion in a matter of days, with the collapse of the TerraUSD and Luna tokens.

Montenegro's Minister of Justice, Bojan Božović, signed the extradition order following a review by the country's Supreme Court. While South Korea also sought Kwon's extradition, the US request took priority due to the severity of the charges. Montenegro has no direct extradition treaty with either country, complicating the decision process.

Montenegro says it extradites Terraform Lab co-founder Do Kwon to US https://t.co/tLDcq6sK0r

— The Straits Times (@straits_times) December 31, 2024

Extradition Leads to US Fraud Charges

Kwon has encountered legal issues globally. In February 2023, US regulators charged him with fraud, accusing him of misrepresenting TerraUSD's stability. His partner, Han Cheng Jun, was extradited to South Korea earlier this year.

In Montenegro, Kwon served a four-month sentence for document forgery. After his release, he was detained again while authorities decided on his extradition, as reported by Finance Magnates.

Court Rejecting US Request

In August, a Montenegro appeals court ruled that Do Kwon would be extradited to South Korea, rejecting the United States’ request. However, the timeline for his transfer to South Korea remained unclear. This decision followed months of legal battles between South Korea and the US over Kwon's extradition. The appeals court's latest ruling upheld the earlier decision of a lower court. Ultimately, Kwon has now been extradited to the US.