Two-Month Extension for Do Kwon's Custody in Montenegro

By: Isha Das

Terraform Labs co-founder, Do Kwon's stay in Montenegro has been extended by two months. The action comes amid potential extradition of the crypto-tycoon to the United States or South Korea, both of which have pending extradition requests for him.

Kwon and Terraform Labs chief financial officer Han Chang-joon were arrested in Montenegro in March for traveling with counterfeit papers. Kwon was subsequently sentenced to a four-month term, which is nearing its conclusion. However, he will not gain his freedom yet as he may be extradited to either the US or South Korea. The court in Montenegro has confirmed that the legal prerequisites for his extradition to either country have been met.

In his home countries, Kwon has been criminally charged for his involvement in the unexpected implosion of the Terra ecosystem. Notably, the Terra algorithmic TerraUSD stablecoin and related cryptocurrencies collapsed last year, erasing roughly $40 billion in assets. This event had significant global financial impact and led to intensified scrutiny by regulatory authorities worldwide.

The future of Kwon now lies in the hands of Montenegro's Minister of Justice, who has yet to announce a decision. Meanwhile, speculation suggests that despite Kwon's preference for extradition to South Korea, he is likely to be extradited to the US.