Montenegro’s Justice Minister, Andrej Milović, recently met with officials from the U.S. Securities and Exchange Commission (SEC) to discuss the investigation into Terraform Labs co-founder Do Kwon. The meeting, attended by SEC Director Gurbir Grewal, aimed at the fraud case involving Kwon.
Currently, Kwon is in Montenegro, facing extradition requests from both the U.S. and South Korea. Arrested in March 2023 for using falsified travel documents, he was sentenced to 4 months in prison. His lawyers have filed appeals delaying the extradition process, and the final decision with Minister Milović.
In April, a U.S. jury found Kwon and Terraform Labs guilty of fraud. The SEC proposed to pay $5.3 billion in penalties. The collapse of Terraform in 2022, following the instability of its algorithmic stablecoin TerraUSD (UST), led to significant financial losses and bankruptcy filings. The SEC’s meeting with Montenegrin authorities focused on improving cooperation on financial regulation and protecting investors.
