The Government of Montenegro has reported that Justice Minister Andrej Milović held discussions with officials from the United States Securities and Exchange Commission (SEC) regarding the investigation into Do Kwon, the co-founder of Terraform Labs.
According to the government’s notice on May 22, Milović had a meeting with SEC personnel, including Enforcement Director Gurbir Grewal. During the meeting, the justice minister discussed the SEC’s case against Kwon, in which he and Terraform were found guilty of fraud in April.
As of now, Kwon is in Montenegro, where the country’s courts are considering extradition requests from the U.S. and South Korea. He was arrested in March 2023 for using fake travel documents and was sentenced to four months in prison.
Although Kwon is currently free to travel within Montenegro after his release, his lawyers have filed multiple appeals, causing delays in the extradition proceedings. Depending on the court rulings, it will ultimately be up to Milović to decide whether the Terraform co-founder will be sent to the U.S. or South Korea.
In the U.S., a judge will review the remedies proposed by Terraform and Kwon during a hearing on May 29. A jury had previously found them liable for fraud. The SEC has suggested that the co-founder and Terraform should pay approximately $5.3 billion in disgorgement, prejudgment interest, and civil penalties.
Terraform faced a collapse in 2022 due to the instability of its algorithmic stablecoin, TerraUSD (UST). In January, the company filed for bankruptcy in the U.S., reporting estimated liabilities and assets of up to $500 million.
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