The Government of Montenegro reported that Justice Minister Andrej Milović had discussed the investigation into Terraform Labs co-founder Do Kwon with officials from the United States Securities and Exchange Commission (SEC).
In a May 22 notice, Montenegro’s government said Milović had met with SEC personnel, including Enforcement Director Gurbir Grewal. According to the government, the Justice Minister discussed the SEC’s case against Kwon, in which he and Terraform were found liable for fraud in April.
At the time of publication, Kwon was in Montenegro as the country’s courts considered requests for extradition from the U.S. and South Korea. He was arrested in March 2023 for using falsified travel documents and sentenced to four months in prison.
Though free to travel within Montenegro after his release, Kwon’s lawyers have filed several appeals that have delayed extradition proceedings. Depending on the court rulings, Milović may ultimately decide whether the Terraform co-founder is sent to the U.S. or South Korea.
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In the United States, a judge will consider remedies from Terraform and Kwon at a May 29 hearing after a jury found them liable for fraud. The SEC proposed that the co-founder and Terraform pay roughly $5.3 billion in disgorgement, prejudgment interest and civil penalties.
Terraform collapsed in 2022 following the instability of its algorithmic stablecoin, TerraUSD (UST). In January, the firm filed for bankruptcy in the U.S., reporting up to $500 million in estimated liabilities and assets.
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