Montenegro To Extradite 'Crypto King' To U.S. After Long Legal Battle

South Korean cryptocurrency entrepreneur Hyeong Do Kwon leaves a prison in Montenegro after sentencing on March 23.

PODGORICA -- After a multinational back-and-forth legal battle, Montenegro on December 27 said it would extradite South Korean cryptocurrency entrepreneur Hyeong Do Kwon -- the so-called Crypto King -- to the United States.

Do Kwon is sought by both the United States and South Korea and also faces possible legal action in Singapore.

Montenegrin courts have previously issued at least eight often-contradictory decisions regarding Do Kwon's fate.

In September, the Montenegrin Supreme Court ruled that Do Kwon could be sent to either the United States or South Korea and that the final decision on which country would be up to Justice Minister Bojan Bozovic.

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On December 24, Do Kwon lost his final appeal against extradition with Montenegro's Constitutional Court.

In the latest ruling, the Justice Ministry said the U.S. request had met the threshold for removal and, as a result Bozovic "issued a decision approving the extradition."

The ministry said the criteria included the gravity of the criminal acts, the order of submission of the extradition requests, and the citizenship of the person in question.

The former CEO and co-founder of the cryptocurrency company Terraform Labs is wanted by U.S. and South Korean authorities for his alleged role in capital market and securities fraud involving assets worth some $40 billion.

Do Kwon was arrested with business partner Chang Joon in March 2023 at Podgorica airport while attempting to fly to Dubai using on allegedly forged passports.

They each received a four-month prison sentence on the forged-passport charge.

SEE ALSO: Montenegro Extradites Business Partner Of 'Crypto King' To South Korea

Chang, who was wanted only by South Korea, was extradited to that country on February 5.

After serving his sentence, Do Kwon was sent to a shelter for foreigners near Podgorica, where he awaited extradition.

Do Kwon in October claimed that the South Korean charges were illegitimate and "politically motivated."

Despite the legal struggle, Do Kwon's trial in absentia took place in the United States, where a New York jury on April 5 found him and Terraform labs liable on civil fraud charges, agreeing with the U.S. Securities and Exchange Commission that they had misled investors.

Terraform Labs agreed to pay about $4.5 billion in a civil settlement with the SEC following the court's ruling. Do Kwon was ordered to pay $204 million.

Following the verdict, a Terraform spokesperson said, "We continue to maintain that the SEC does not have the legal authority to bring this case at all" and that the company was weighing its options.