Montenegrin court allows extradition of TerraUSD stablecoin co-founder

Do Kwon, co-founder of Terraform Labs, may be extradited from Montenegro to South Korea or the US. A court in the capital Podgorica decided this on Friday. The Montenegrin Minister of Justice ultimately decides to which country Kwon will be extradited.

The former CEO is currently still stuck in Montenegro, where he was arrested at the end of March when he wanted to take a plane to Dubai. Both the US and South Korea are demanding the extradition of Kwon, who is a South Korean national. writes Reuters.

The former CEO and Daniel Shin, the other founder of Terraform Labs, are accused of fraud and embezzlement in the US. According to prosecutors, Kwon and the others involved made 324.6 million euros in “illegal profits” before the TerraUSD stablecoin, which tracked the value of the dollar, collapsed. Prosecutors have frozen 246.8 billion won of those charged. That amounts to 173 million euros.

The court in Podgorica also sentenced Kwon to four months in prison in June for using forged passports. Montenegrin’s Supreme Court says the co-founder has agreed to be extradited to South Korea, but the justice minister will ultimately decide on the extradition. That decision will follow after Kwon has served his four-month prison sentence.