Kwon’s legal issues in Montenegro started when he and Terraform CFO Han Chang-joon were arrested at Podgorica airport in March 2023 for attempting to use forged documents. The extradition process is expected to be signed by the end of this week. Han Chang-joon was extradited to South Korea in 2024 after completing his sentence.
Montenegro’s Justice Minister, Bojan Božović, has confirmed that a decision has been reached regarding the extradition of To Kwon, co-founder of Terraform Labs. The decision comes after a long and controversial legal process that has spanned several months.
Božović declined to provide details about the case and the destination for Kwon’s extradition. Meanwhile, the US has pushed for Kwon’s prosecution on more severe charges, including securities fraud, which could result in a lengthy prison sentence if prosecuted in American courts.
South Korean authorities are expected to expedite Kwon’s return as there are no further avenues for appeal within Montenegro following the Appellate Court’s final ruling in August 2024.
If extradited to South Korea, Kwon will face an intense legal battle as several other Terraform executives have already been indicted. However, South Korea is considered relatively lenient in terms of penalties for financial crimes. Montenegro’s decision on Kwon’s extradition is expected to bring clarity to a case that has faced many delays and appeals. Both were sentenced to jail terms in Montenegro, but they continued to be at the center of international extradition requests as they fought charges abroad for their role in the collapse of TerraLUNA in 2022.
This collapse caused more than $40 billion in losses.
