Montenegro has officially approved the extradition of Do Kwon, the South Korean cryptocurrency mogul widely known as "the king of cryptocurrencies," to the United States, marking a pivotal moment in the legal saga surrounding his alleged financial misdeeds. The Montenegrin Ministry of Justice announced the decision, as both the U.S. and South Korea had been vying for Kwon's extradition.
The Justice Minister, Bojan Bozovic, stated, "The Ministry of Justice examined all the facts and circumstances, including the severity of the crimes, jurisdiction, and the order of extradition requests." It was revealed through assessment, Kwon’s situation weighed more heavily on the criteria favoring extradition to the U.S., hence the minister issued his order.
Do Kwon was arrested at Podgorica Airport in March 2023, where he was attempting to flee Montenegro with fellow associate Han Cheng Jun, allegedly using fake Costa Rican passports. Since then, Kwon has served four months in prison for document forgery – yet, he now faces far graver matters. Kwon is charged with defrauding investors, which, theoretically, amounts to around $40 billion lost when his cryptocurrency companies Terraform Labs' assets collapsed.
The cryptocurrency market was hit hard following the implosions of TerraUSD and its sister token Luna, which were intended to maintain stable price levels. At their peak, both currencies regulated by Kwon managed to create vast wealth for investors, but as the tokens plummeted, retail investors were left devastated.
Before the decision, Kwon's legal proceedings were riddled with complications; various Montenegrin courts had flipped back and forth between favoring the U.S. and South Korean extradition requests over the last few months. The Montenegro Supreme Court ruled late last year, asserting it was within the justice minister's jurisdiction to decide the matter. Soon after, the Constitutional Court dismissed Kwon’s last-ditch appeal against extradition.
The Justice Ministry emphasized it had considered factors such as Kwon’s citizenship and the potential for subsequent extradition. Following the ruling, South Korea's extradition request was officially denied, with Montenegro asserting, "Most criteria provided for by law support the U.S. request.”
This development has substantial political ramifications beyond the extradition itself. During the Montenegrin parliamentary elections held last year, Kwon claimed significant figures purportedly funded the Europe Now movement. Following this claim, former Prime Minister Dritan Abazovic called for investigations, labelling Kwon's assertions as serious. Although the movement has dismissed the implication as a smear campaign, it has spawned interrogation and political turbulence within Montenegro's legal climate.
“The public awaits clarity on the so-called ‘letter affair’, but all eyes are now set on Do Kwon’s extradition,” said Boskovic, reflecting the weight of public anticipation amid political shifts.
With Kwon's legal status still precarious, his lawyers have emphasized the interpretations of his rights during this process. The defense team expressed concerns over the handling of their client’s extradition request, alleging violations of rights to proper defense and free legal remedy. Since the extradition decreed by Minister Bozovic, Kwon's lawyers have been tight-lipped about their next move, initially advocating for his extradition to South Korea, citing national interests.
U.S. authorities have remained unfazed throughout this process, reflecting their insistence on prosecuting Kwon for fraud. Earlier this year, shortly after Kwon’s arrest, prosecutors accused him of serious felonies, including misrepresentation of securities pricing, alongside wire fraud. A Securities and Exchange Commission case also looms over Kwon and Terraform Labs, which reportedly resulted in another $4.5 billion settlement, sending waves of anxiety across the crypto market.
Following the approval of the extradition, Kwon awaits arrangements to be sent back to the United States. His case highlights the sometimes perilous undercurrents of the ever-evolving cryptocurrency market, and the potential for severe legal consequences amid its highs and lows. Kwon’s story—one of immense rise juxtaposed with devastating fall—will likely be dissected for years to come as authorities tighten regulation and scrutiny over digital assets.
For now, as Montenegro wraps up its legal proceedings, the future legal battle awaits Kwon across the ocean, where he faces significant charges and burdens of proof placed squarely on his shoulders. The road to justice is fraught with uncertainty, and the cryptocurrency community will be watching closely as events continue to unravel.
