Former Terraform Labs CEO won’t be extradited to US, South Korea yet: Bloomberg

Last week, WSJ reported that Montenegro planned to extradite Kwon to the US rather than South Korea


JLStock/Shutterstock modified by Blockworks


Montenegro is slowing its roll on extraditing former Terraform Labs CEO Do Kwon, according to Bloomberg.

Last week, the Wall Street Journal reported that Montenegro planned to extradite the former executive to the United States over his home country, South Korea. Kwon faces charges in both countries. 

The extension, Bloomberg reported, came at the request of both the US and South Korea. A court in Podgorica ruled that the term in custody would be extended to February. Without an extension, the term would have ended Friday.

Kwon has been in Montenegro since March, when he was first arrested for allegedly using falsified paperwork. He was sentenced to prison in June.

Read more: Terraform Labs founder Do Kwon faces US extradition: WSJ

The court spokesperson, Marija Rokovic, told Bloomberg that Kwon’s defense team appealed the extradition decision, which will now be heard by an appellate court in Podgorica. The High Court previously ruled that extradition could take place, and left it to the justice minister of Montenegro to decide where to extradite Kwon.

The US Securities and Exchange Commission has an open case against both Kwon and his former company, Terraform Labs. The suit was filed in February after the collapse of algorithmic stablecoin TerraUSD (UST), which led to a $40 billion crypto crash. UST’s failure also helped lead to multiple bankruptcies from the likes of Voyager and Celsius, both of which had exposure to the stablecoin.

The SEC alleges that Terraform and Kwon offered and sold unregistered securities. Kwon, in South Korea, faces fraud and capital markets violations charges.

Terraform and the SEC are currently debating whether Judge Jed Rakoff or a jury should determine if the alleged securities Terraform and Kwon offered fall under the US law’s definition of securities.

The SEC is in favor of Judge Rakoff issuing a summary judgment on the status of the alleged securities instead of letting a jury decide. The defense, however, would rather let the jury decide if the tokens pass the Howey test.

Don’t miss the next big story – join our free daily newsletter.


Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg


In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.


BUZZ holds shares of Coinbase, Robinhood and MicroStrategy


Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile


The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally


While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders


Trading volumes totalled $154 billion in Q4, including $125 billion in institutional volume


DeFi on Bitcoin is all the rage right now and Stacks is positioned to benefit