The Montenegrin government has announced that Justice Minister Andrej Milović held discussions with officials from the United States Securities and Exchange Commission (SEC) regarding the investigation into Do Kwon, co-founder of Terraform Labs.
According to a notice released by the Montenegrin government on May 22, Milović met with personnel from the SEC, including Enforcement Director Gurbir Grewal. The justice minister reportedly discussed the SEC’s case against Kwon, who, along with Terraform, was found guilty of fraud in April.
Kwon is currently in Montenegro, awaiting a decision on extradition requests from the United States and South Korea. He was arrested in March 2023 for using forged travel documents and was subsequently sentenced to four months in prison.
Although Kwon is free to move within Montenegro after his release, his lawyers have filed multiple appeals, causing delays in the extradition process. Depending on the court’s rulings, it will ultimately be up to Milović to decide whether Kwon will be sent to the United States or South Korea.
In the United States, a judge will review the proposed remedies from Terraform and Kwon during a hearing on May 29. Both parties were found liable for fraud by a jury. The SEC has recommended that the co-founder and Terraform pay approximately $5.3 billion in disgorgement, prejudgment interest, and civil penalties.
Terraform experienced a collapse in 2022 due to the instability of its algorithmic stablecoin, TerraUSD (UST). In January, the company filed for bankruptcy in the United States, citing estimated liabilities and assets of up to $500 million.
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