Terra’s Do Kwon to be sent to US to face trial on fraud charges, minister says

Do Kwon is not headed for South Korea after all.

On Friday, news broke that Do Kwon, the founder of the failed Terra blockchain ecosystem, would be extradited to the US from Montenegro instead of his native South Korea.

In a statement issued by the Department of Justice in the small Balkan nation, officials said US prosecutors’ request that Kwon face trial on fraud changes in New York would be granted.

“Most of the criteria provided by the law apply to the request for extradition by the competent authorities of the United States of America,” said a statement from the Minister of Justice Bojan Božović.

Bloomberg News first reported the development.

It is unclear when Do Kwon may be extradited. He has said in the past that he is not guilty.

South Korea wins a round

For months, US prosecutors and their South Korean counterparts have sought to extradite Kwon from Montenegro to face charges in their respective jurisdictions.

In August, a Montenegro appellate court ordered that Kwon be sent to South Korea to face justice.

Yet now it appears that the Southern District of New York, the same office that prosecuted Sam Bankman-Fried, prevailed in persuading Montenegro’s courts to send him to Manhattan instead.

Given how convoluted the extradition process has been over the last year, it is still possible that Kwon’s destination may change.

There has been confusion around the decision-making in the case between the courts and Ministry of Justice. And Kwon may still be able to appeal this latest development.

In March 2023, Kwon was arrested on the tarmac of Podgorica Airport in the Montenegrin capital with an associate.

The two men were travelling on fake Costa Rican passports and were about to board a private jet for Dubai.

Kwon, who has been the target of an Interpol red notice after going underground following the collapse of Terra that May, hid out in neighbouring Serbia for months, according to reporting by DL News.

Pedro Solimano is a markets correspondent based in Buenos Aires. Got a tip? Email him at psolimano@dlnews.com.