A Montenegro court has approved the extradition of Terraform Labs co-founder Do Kwon to either South Korea or the United States, where he faces charges related to the collapse of the TerraUSD and Luna cryptocurrencies, according to report by The Block.
The High Court in Podgorica, the capital city of Montenegro, issued the ruling on Friday, following requests from both South Korea and the United States. The decision marks a significant step forward in the ongoing legal proceedings against Kwon, who is accused of playing a role in the collapse of TerraUSD and Luna, which caused investors to lose billions of dollars.
In a statement, the court noted that Kwon has agreed to be extradited to South Korea. However, the final decision on which country will take custody of Kwon rests with Montenegro's Minister of Justice. The minister is expected to make a decision in the coming weeks.
If the minister approves Kwon's extradition to South Korea, he will be extradited after serving a four-month prison sentence in Montenegro for document forgery.
Kwon was initially arrested in Montenegro in March when he was found to be using a fake passport to attempt to leave the country. He was released from jail on bail in May, but he has remained in Montenegro while awaiting the outcome of the extradition proceedings.
The collapse of TerraUSD and Luna in May 2022 sent shockwaves through the cryptocurrency market, wiping out billions of dollars in investor wealth. The two tokens were once among the most popular and valuable cryptocurrencies, but they lost their value almost overnight, leaving investors with significant losses.
Kwon has been accused of playing a role in the collapse of the two tokens. South Korean prosecutors have alleged that he orchestrated a "pump-and-dump" scheme that caused TerraUSD and Luna to lose their value. Kwon has denied the allegations, maintaining that he is innocent of any wrongdoing.
The extradition of Kwon to either South Korea or the United States would represent a major victory for law enforcement officials who are investigating the collapse of TerraUSD and Luna. It will also send a strong message to other cryptocurrency entrepreneurs that they will not be immune from legal consequences if they engage in illegal activities.
The extradition proceedings against Kwon are ongoing, and it remains to be seen whether he will ultimately be extradited to South Korea or the United States. However, the court's decision to approve his extradition is a significant development that could have a major impact on the cryptocurrency industry.