Do Kwon's Montenegro Detour Gets 2-Month Extension, Extradition Decision Pending

The detention of Terraform Labs co-founder Do Kwon in Montenegro has been extended for two more months, until Feb. 15, according to court spokeswoman Marija Rakovic.

This decision by the High Court in Podgorica comes in response to requests from both the United States and South Korea, where Kwon faces charges linked to the collapse of TerraUSD, an algorithmic stablecoin, in 2022, Bloomberg reported.

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Kwon, currently facing charges in South Korea related to the $60 billion collapse of the digital assets he created, is also under scrutiny for alleged fraud by the U.S. Securities and Exchange Commission.

He developed the TerraUSD stablecoin, designed to hold a stable value of $1 using algorithms and a related token, Luna LUNA/USD. However, this initiative dramatically failed in May 2022, exacerbating the downturn in the cryptocurrency market and leading to the downfall of numerous digital asset firms.

Following an arrest warrant issued by South Korea, Kwon departed from Singapore, where Terraform Labs is headquartered. He was later detained in Podgorica, Montenegro's capital, at the airport alongside an associate after being discovered traveling with counterfeit documents.

Last month, the High Court had determined that Kwon could be extradited.

However, the final decision on his extradition and the choice of the country now rests with Montenegro's justice minister.

Kwon's legal team has challenged this ruling, and their appeal is currently under review by an appellate court in Podgorica, Rakovic said.

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