Montenegro Court Halts Extradition of Terra’s Do Kwon to the US

[bbc.reporter]

I am quite confused on this. If anyone can help me understand what Do Kwon wants, please share your explanation.

Do Kwon wants to be extradited to America, however, the government of Montenegro does not want him to be extradited? This is very head scratching unless Do Kwon is very uncomfortable in his prison cell on Montenegro and he might be speculating that the prison cell in America would be more comfortable hehehe.

In any case, his crime is not similar to a heinous crime. I reckon he deserves a comfortable room hehehe.



In a pivotal legal reversal, Montenegro’s Court of Appeals has annulled the extradition of Terraform Labs co-founder Do Kwon to the United States, siding with his defense’s appeal and invalidating a prior High Court ruling from Feb. 20.

This latest court decision underscores the case’s procedural flaws, especially the absence of clear rationale and factual clarity in the High Court’s extradition order, demanding a retrial. “The Appeals Court of Montenegro, after the council session on March 5, 2024, issued a decision that accepted the appeal of the defendant Kwon Do Hyeong’s defense, annulled the decision of the Higher Court in Podgorica No. 146/24,” the statement notes.

Following a series of appeals by Do Kwon against extradition decisions favoring the U.S. and South Korea, the document notes that the Montenegro Appeals Court identified significant procedural breaches in the handling of extradition requests.

Source https://news.bitcoin.com/montenegro-court-halts-extradition-of-terras-do-kwon-to-the-us/

[kryptqnick]

I was about to make a thread about this news, and I'm happy that Bitcointalk search feature was helpful for once, and I found this thread before making another one.
But the way I understand it, Do Kwon does NOT want to be extradited neither to the USA nor to South Korea, so this decision was in his favour, actually.
From the article you shared:

Following a series of appeals by Do Kwon against extradition decisions favoring the U.S. and South Korea, the document notes that the Montenegro Appeals Court identified significant procedural breaches in the handling of extradition requests.

So he's against extradition, and the extradition to the US was formally stopped on the grounds of inconsistency of where he should be extradited (to the US or to South Korea).

[zasad@]

In Korea, Do Kwon will most likely receive life imprisonment upon sentencing. In the USA, he could receive 10-20 years in prison, depending on the work of his lawyers and successful cooperation with the US authorities. But Do Kwon also has more money than Montenegro’s budget for the year, so Montenegro does not want to give up such a valuable criminal.

[Lucius]

https://bitcointalk.org/index.php?topic=5446051.0

@bbc.reporter, there is already a topic about Do Kwon, and there we also discussed the things that interest you. I think it would be best if you lock this topic.

[blckhawk]

I think I can assume the reason why he wants the extradition, there's definitely a threat to his life in Montenegro and the person that's threatening Do Kwon has probably started the plan to do him some harm and it's got to do with an accident in the prison, that's the only thing that I can think of that could lead a man to not mind an extradition to the US, most criminals don't want that except for Julian Assange as he's not a criminal but I digress. Or what @zasad@ is saying could be the reason for the desire for extradition, money/financial crimes isn't that prioritized in US so they give them lighter sentences after all, we've got Jordan Belfort as an example, maybe Do Kwon wants to be that guy and have a film based on his exploits someday.

[pakhitheboss]

I think I can assume the reason why he wants the extradition, there's definitely a threat to his life in Montenegro and the person that's threatening Do Kwon has probably started the plan to do him some harm and it's got to do with an accident in the prison, that's the only thing that I can think of that could lead a man to not mind an extradition to the US, most criminals don't want that except for Julian Assange as he's not a criminal but I digress. Or what @zasad@ is saying could be the reason for the desire for extradition, money/financial crimes isn't that prioritized in US so they give them lighter sentences after all, we've got Jordan Belfort as an example, maybe Do Kwon wants to be that guy and have a film based on his exploits someday.

Another known corrupt government and its authorities, according to news and media reports is the worst place to be a prisoner. The reason is that they can kill a prisoner without the government knowing about it, by only paying some money. It is evident if you do some Google search with the amount of corruption. He is looking for an escape and he would be bribing the jailers or the person responsible for his jail to make his life comfortable.

An extradition meant he got to secure his life in a prison with low lives out of the current prison. I do not know how far he can go through with his extraction to the US as he can get killed while it is being done. In the end, it is all about how you can as in this case survive an execution. It is nothing but an another way to survive with influence from the community.

[zasad@]

I think I can assume the reason why he wants the extradition, there's definitely a threat to his life in Montenegro and the person that's threatening Do Kwon has probably started the plan to do him some harm and it's got to do with an accident in the prison, that's the only thing that I can think of that could lead a man to not mind an extradition to the US, most criminals don't want that except for Julian Assange as he's not a criminal but I digress. Or what @zasad@ is saying could be the reason for the desire for extradition, money/financial crimes isn't that prioritized in US so they give them lighter sentences after all, we've got Jordan Belfort as an example, maybe Do Kwon wants to be that guy and have a film based on his exploits someday.

I do not agree that the US has very lenient penalties for financial crimes.

Russian hacker called ‘Tony Soprano-style mob boss’ is sentenced in Seattle to 27 years
https://www.seattletimes.com/seattle-news/law-justice/prolific-russian-hacker-who-raked-in-millions-sentenced-to-27-years-in-prison/

If you cooperate with the government and return everything you earned through crime, then you will get a short sentence, otherwise you will get 30 years or more.

If Do Kwon pays, then he will be better guarded in Montenegro than the president of this country

[zasad@]

https://www.coindesk.com/policy/2025/08/11/terra-s-do-kwon-to-change-not-guilty-plea-in-us-fraud-case
Terra's Do Kwon to Change 'Not Guilty' Plea in US Fraud Case
Do Kwon previously had pleaded "not guilty" to multiple fraud charges earlier this year.

https://www.msn.com/en-us/money/markets/crypto-exec-do-kwon-charged-with-fraud-expected-to-plead-guilty/ar-AA1KkDHj
"NEW YORK (Reuters) -Do Kwon, the South Korean cryptocurrency entrepreneur facing U.S. fraud charges over two digital currencies that lost an estimated $40 billion in 2022, is expected to enter a guilty plea, court records showed on Monday.

In a brief scheduling order, U.S. District Judge Paul Engelmayer said he had been advised that Kwon may change his plea and set a hearing for Tuesday at 10:30 a.m. EDT (1430 GMT) in Manhattan federal court.

Kwon, who co-founded Singapore-based Terraform Labs and developed the TerraUSD and Luna currencies, had previously pleaded not guilty to a nine-count indictment charging him with securities fraud, wire fraud, commodities fraud and money laundering conspiracy.

Neither lawyers for Kwon nor the Manhattan U.S. Attorney's office, which brought the charges, immediately responded to requests for comment."

[sokani]

https://www.coindesk.com/policy/2025/08/11/terra-s-do-kwon-to-change-not-guilty-plea-in-us-fraud-case
Terra's Do Kwon to Change 'Not Guilty' Plea in US Fraud Case
Do Kwon previously had pleaded "not guilty" to multiple fraud charges earlier this year.

I don't know what Do Kwon was thinking in the first place when he pleaded "not guilty" to the charges against him. Finally, sense dawned on him, and he's going to change his plea, which is the smart thing to do. With the tonnes of evidence against him, there's no way he would have won the trial. Rather, he would make his case difficult and would get a longer sentence if found guilty.

[zasad@]

https://www.coindesk.com/policy/2025/08/11/terra-s-do-kwon-to-change-not-guilty-plea-in-us-fraud-case
Terra's Do Kwon to Change 'Not Guilty' Plea in US Fraud Case
Do Kwon previously had pleaded "not guilty" to multiple fraud charges earlier this year.

I don't know what Do Kwon was thinking in the first place when he pleaded "not guilty" to the charges against him. Finally, sense dawned on him, and he's going to change his plea, which is the smart thing to do. With the tonnes of evidence against him, there's no way he would have won the trial. Rather, he would make his case difficult and would get a longer sentence if found guilty.

The US has a more lenient justice system, if you make a deal with the prosecution and pay damages. I think that while Do Kwon was in Montenegro, his lawyers tried to negotiate with the American justice system. The story is long, almost forgotten. The US now has a good policy for the development of cryptocurrencies, so I am sure that Do Kwon will get a prison term, much less than SBF.

[sokani]

The US has a more lenient justice system, if you make a deal with the prosecution and pay damages. I think that while Do Kwon was in Montenegro, his lawyers tried to negotiate with the American justice system. The story is long, almost forgotten. The US now has a good policy for the development of cryptocurrencies, so I am sure that Do Kwon will get a prison term, much less than SBF.

He has pleaded guilty, and his sentence is scheduled to take place on 11 Dec, 2025.

https://cointelegraph.com/news/do-kwon-guilty-fraud-terraform-labs

He pleaded guilty on two counts of wire fraud and conspiracy to defraud and won't serve more than 12 years in jail. The US Justice system is indeed very lenient.

[zasad@]

The US has a more lenient justice system, if you make a deal with the prosecution and pay damages. I think that while Do Kwon was in Montenegro, his lawyers tried to negotiate with the American justice system. The story is long, almost forgotten. The US now has a good policy for the development of cryptocurrencies, so I am sure that Do Kwon will get a prison term, much less than SBF.

He has pleaded guilty, and his sentence is scheduled to take place on 11 Dec, 2025.

https://cointelegraph.com/news/do-kwon-guilty-fraud-terraform-labs

He pleaded guilty on two counts of wire fraud and conspiracy to defraud and won't serve more than 12 years in jail. The US Justice system is indeed very lenient.

I also read the latest news. Do Kwon dropped out of court, which means his lawyers made a good deal with the US government.
Here is the reason:

https://www.reuters.com/legal/crypto-firm-terraform-labs-agrees-pay-447-bln-resolve-dispute-with-sec-2024-06-12/
"NEW YORK, June 12 (Reuters) - Terraform Labs reached a $4.47 billion civil settlement with the U.S. Securities and Exchange Commission, after being found liable by a jury for defrauding cryptocurrency investors who lost an estimated $40 billion when the TerraUSD and Luna tokens collapsed in 2022.
A proposed final judgment covering Terraform and its founder Do Kwon was filed on Wednesday in Manhattan federal court. It requires approval by U.S. District Judge Jed Rakoff, who oversaw the trial, which ended on April 5."

Do Kwon will also pay a fine of $80 million.
https://www.reuters.com/legal/government/do-kwon-pleads-guilty-us-fraud-charges-40-billion-crypto-collapse-2025-08-12/
___

All the people who lost money added to the US budget. CHEESE

[sokani]

All the people who lost money added to the US budget. CHEESE

Hahaha, just like how they got all the bitcoin in their purse. This is the reason they were battling with the Montenegrin authorities to have him released to them.

I've a question. As I understand, there are still charges against him in South Korea. If he completes his sentence in the US and gets deported to his country. Will he be prosecuted in South Korea also?

[Fiatless]

Hahaha, just like how they got all the bitcoin in their purse. This is the reason they were battling with the Montenegrin authorities to have him released to them.

"Entry of this judgment would ensure the maximal return of funds to harmed investors and put Terraform out of business for good," the SEC said in a court filing. "Thus, this proposed judgment is fair, reasonable, and in the public interest."

https://www.reuters.com/legal/crypto-firm-terraform-labs-agrees-pay-447-bln-resolve-dispute-with-sec-2024-06-12/
The judgment gave room for the return of funds to affected investors who lost funds investing in Terraform Labs. So the government is not just collecting all the recovered funds.

I've a question. As I understand, there are still charges against him in South Korea. If he completes his sentence in the US and gets deported to his country. Will he be prosecuted in South Korea also?

Except that there is a diplomatic agreement between the US and South Korea. He would still face his charges anytime he steps his feet on South Korean soil. He might choose to avoid the country since the US is comfortable.   

[zasad@]

All the people who lost money added to the US budget. CHEESE

Hahaha, just like how they got all the bitcoin in their purse. This is the reason they were battling with the Montenegrin authorities to have him released to them.

I've a question. As I understand, there are still charges against him in South Korea. If he completes his sentence in the US and gets deported to his country. Will he be prosecuted in South Korea also?

It is already clear that Do Kwon has made a deal with the US government, and we will see the results at the end of the year. I think Do Kwon will get a prison term of 5-12 years and will give all his money to the US treasury.

Formally, South Korea will have claims against Do Kwon, but since he has already given all his money to the US government, he will not be persecuted as much as before Do Kwon will have to not visit South Korea and countries that can extradite him.

[Fiatless]

It is already clear that Do Kwon has made a deal with the US government, and we will see the results at the end of the year. I think Do Kwon will get a prison term of 5-12 years and will give all his money to the US treasury.

Prosecutors will not seek more than twelve years' imprisonment. But Judge Paul Engelmayer said he could give a longer punishment which could be up to 25years. 

Formally, South Korea will have claims against Do Kwon, but since he has already given all his money to the US government, he will not be persecuted as much as before Do Kwon will have to not visit South Korea and countries that can extradite him.

South Korea is part of the US International Prisoner Transfer Program. And it seems Do Kwon is open to serving part of his jail term in South Korea. Maybe he may not face another trial in his home country if he is later transferred to a South Korean prison.

[sokani]

It is already clear that Do Kwon has made a deal with the US government, and we will see the results at the end of the year. I think Do Kwon will get a prison term of 5-12 years and will give all his money to the US treasury.

Prosecutors will not seek more than twelve years' imprisonment. But Judge Paul Engelmayer said he could give a longer punishment which could be up to 25years.  

You're right. The plea agreement with the US prosecutors is 12 years. However, only the judge has the final say according to the US plea agreement. The judge might decide he gets the maximum sentence, and I really hope this happens because 12 years in prison is like a slap on the wrist for his crimes.

A defendant may only plead guilty if they actually committed the crime and admits to doing so in open court before the judge. When the defendant admits to the crime, they agree they are guilty and they agree that they may be “sentenced” by the judge presiding over the court — the only person authorized to impose a sentence. Sometimes the Government will agree, as part of a plea agreement, not to recommend an enhanced sentence (such as additional time in prison for certain reasons) but it is left up to the judge to determine how the defendant will be punished.

[zasad@]

It is already clear that Do Kwon has made a deal with the US government, and we will see the results at the end of the year. I think Do Kwon will get a prison term of 5-12 years and will give all his money to the US treasury.

Prosecutors will not seek more than twelve years' imprisonment. But Judge Paul Engelmayer said he could give a longer punishment which could be up to 25years.  

Formally, South Korea will have claims against Do Kwon, but since he has already given all his money to the US government, he will not be persecuted as much as before Do Kwon will have to not visit South Korea and countries that can extradite him.

South Korea is part of the US International Prisoner Transfer Program. And it seems Do Kwon is open to serving part of his jail term in South Korea. Maybe he may not face another trial in his home country if he is later transferred to a South Korean prison.

I think this will be a very bad outcome for Do Kwon. His company and he himself will have to pay huge fines in the US, and according to the agreement he is forced to give back all the money that he got from the fraud. In South Korea he can get up to life imprisonment and he will not have the money to reduce the sentence. I think he will spend his time in a US prison.

[bbc.reporter]

The mistake a Do Kwon, it appears, is he and his team was not quick enough to dump the bitcoin in their treasury to support their stablecoin's peg. Also, why did they hold bitcoin instead of having an emergency backing of USDT that they can use as a support of the peg. If they held their billions in a treasury of other stablecoins, I reckon the people that attacked UST's peg and Luna would be discouraged from attacking it.

This is a very headshaking occurrence for Do Kwon because one of the causes of the failure of Terra is his bigheadedness.

[zasad@]

The mistake a Do Kwon, it appears, is he and his team was not quick enough to dump the bitcoin in their treasury to support their stablecoin's peg. Also, why did they hold bitcoin instead of having an emergency backing of USDT that they can use as a support of the peg. If they held their billions in a treasury of other stablecoins, I reckon the people that attacked UST's peg and Luna would be discouraged from attacking it.

This is a very headshaking occurrence for Do Kwon because one of the causes of the failure of Terra is his bigheadedness.

I don't think it was a mistake. This scheme worked on the principle of a pyramid. Investors bought the LUNA coin, then converted it into stablecoins tied to the dollar and staked it on the platform at 20% per annum.

20% per annum in dollars? Do you understand that even the most famous investors do not give such a result?
Thanks to this, the price of the coin constantly increased.