After 18 months of legal battles, Montenegro has approved the extradition of the disgraced crypto entrepreneur Do Kwon to the United States, where he faces fraud charges, local media publication Vijesti reported.

In May 2022, the cryptocurrency market faced heightened volatility that left investors with losses. Two digital tokens, TerraUSD and Luna, lost nearly all their value, erasing nearly $40 billion from the market in days. This disaster marked one of the most significant failures in crypto history, with South Korean entrepreneur Do Kwon at its center.

Montenegro's Crucial Decision

Montenegro's Minister of Justice, Bojan Božović, has now signed the order allowing Do Kwon's extradition to the United States, following a detailed review by the country's Supreme Court.

While South Korea also sought his extradition, the Ministry prioritized the US request, citing the severity of the charges and broader legal considerations. This decision ended months of courtroom deliberations, as Montenegro lacked direct extradition treaties with either country.

The downfall of TerraUSD and Luna triggered global outrage. US regulators accused Kwon of orchestrating a multibillion-dollar fraud through his company, Terraform Labs.

Outgoing SEC Chairman Gary Gensler claimed Kwon misled investors with promises of stability and growth for his tokens. Despite billions in investments, the tokens entered a death spiral in May 2022, sparking a broader cryptocurrency sell-off.

Interpol issued a “red notice” for Kwon in September 2022. Authorities tracked him across multiple countries before his arrest in Montenegro in March 2023. He was detained at Podgorica Airport while attempting to board a flight to Dubai using forged documents.

Mounting Legal Troubles

Kwon has faced legal troubles worldwide. In February 2023, US regulators charged him with fraud, alleging he misrepresented TerraUSD's stability. Meanwhile, his partner, Han Cheng Jun, was extradited to South Korea earlier this year.

In Montenegro, Kwon served a four-month sentence for forging official documents. Following his release, authorities detained him again while deciding his fate for extradition.

With Montenegro's decision finalized, Kwon will be extradited to the US, where he faces charges of securities fraud and investor deception. The case is expected to set an important moment in cryptocurrency regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term, potentially shaping how global authorities handle similar incidents in the future.