The end of the saga: following extradition from Montenegro to the United States, Do Kwon was sentenced to 15 years in prison

Earlier in 2025, we reported that the United States (“US”) Office of Public Affairs had issued a press release (the “Press Release”) detailing the circumstances of Do Kwon’s extradition to the U.S., where he made his initial appearance before the Southern District of New York in relation to allegations of fraud. We highlighted an interesting fact that it had been done in the absence of an extradition treaty between the U.S and Montenegro.

It has now been reported that Do Kwon was sentenced by a United States Court to 15 years in prison for a $40-billion stable coin fraud.

Background

In January 2024, we wrote that the United States Securities and Exchange Commission had postponed the trial of Terraform Labs and its co-founder, pending Do Kwon’s extradition.

The above publication followed up our previous articles: “The United States charge Terraform Labs’ CEO Do Kwon in relation to crypto fraud”, published on 20 February 2023, “Suspected crypto fraudster Do Kwon arrested in Montenegro” released on 24 March 2023, and the first article in this series “Crypto and INTERPOL – can INTERPOL issue a Red Notice in relation to allegations involving crypto?”, in which we noted widely circulating reports that South Korea had asked INTERPOL to issue a Red Notice for the developer and founder of the failed crypto currency Terra, Do Kwon. An INTERPOL Red Notice can be used to prevent an individual from fleeing the jurisdiction prior to issuing an extradition request in their respect.

We then wrote that the US Securities and Exchange Commission had charged Do Kwon and his company, Terraform Labs, with “orchestrating a multi-billion-dollar cryptoasset securities fraud”.

Update

On Thursday 11 December 2025, the Manhattan Federal Court of the United States sentenced Do Kwon to 15 years in prison. Previously in August 2025, Do Kwon had entered guilty pleas to fraud charges in relation to a $40-billion crash following the collapse of Terraform Labs, the Singapore-based firm founded in 2018.

Numerous victims, some speaking in Court, detailed how the fraud ruined their lives.

However, the United States has not always been successful. In our previous blog “UK High Court blocks extradition to the U.S for crypto-related allegations” we wrote about difficulties the U.S. government faced trying to extradite suspects in relation to crypto-related offences.

International dimension of offences involving crypto

As well as being at risk of INTERPOL measures such as Red Notices, those who fear that they may become subject to allegations involving crypto, could also be at risk of extradition.

As was discussed in our previous articles “Can I be extradited for allegations involving crypto?” and “Another U.S. crypto extradition”, due to the borderless nature of cryptocurrency transactions, any allegation of criminality will inevitably involve multiple jurisdictions. As such, there may be numerous states trying to extradite an alleged perpetrator to their jurisdiction to face justice. Indeed, there have now been two examples of individuals being extradited to the U.S. in relation to allegations involving crypto.

The vast majority of criminal allegations that underpin a crypto criminal investigation are of a financial-crime nature, e.g. fraud, money laundering and insider dealing. They can also include alleged offences relating to the breach of financial regulations.

These offences, by their very nature, can take place across multiple jurisdictions, which allows for several countries to assert jurisdiction in respect of these offences, including in relation to conduct that took place outside of their this country (hence extradition can be an option).

In fact, due to the borderless nature of the effect of these crimes, a country may assert jurisdiction against an individual who has never stepped foot on its territory.

To facilitate this process, countries may utilise INTERPOL to locate an individual and seek their arrest prior to issuing an extradition request.

It is expected that due to the nature of the cryptoasset technology, and as cryptocurrency transactions become more prevalent, there will be a large increase in the instances of using INTERPOL to locate individuals accused of crypto-related offences.

International crypto dimension – criminal investigations, litigation and extradition

Those who fear they may be subject to an extradition request from the UK, or who are concerned about liability across multiple jurisdictions including the UK, should consult a legal expert without delay.

Gherson’s criminal litigation, regulatory and investigatory team combine an expert knowledge of criminal and regulatory law underpinned with a firm understanding of digital assets and blockchain technology. As such, the team is able to provide expert strategic advice to anyone facing investigation in relation to any allegation of criminality involving cryptoassets. Working alongside the extradition team, Gherson’s criminal litigation, investigations and regulatory team is able to provide an unparalleled service in any case with an international dimension. The team are able to call upon lawyers in multiple other jurisdictions and build multi-jurisdictional teams to assist with any suitable defence.

INTERPOL, Red Notices and more

In addition, those who fear that a jurisdiction may have requested INTERPOL to process data in their respect, involving allegations of crypto-related offences, or are concerned about potential liability, should get in contact.

Gherson Solicitors regularly receive requests for expert advice and assistance from those who fear they may have outstanding financial issues. Our advice tackles:

1. How to best approach a possible INTERPOL Red Notice;
2. Preparing for potential criminal proceedings / an extradition request;
3. Preparing for a situation where a civil matter or commercial dispute could be used to initiate bogus criminal proceedings; and
4. Exploring the possibility of instigating civil litigation proceedings to recover any misappropriated assets.

Gherson Solicitors have previously written a series of blogs designed to assist those who fear they might be subject to INTERPOL measures (including a Red Notice):

• INTERPOL and Red Notice Challenges
• How to Remove an INTERPOL Red Notice
• INTERPOL Red Notices and Extradition
• How do I know if I am subject to an INTERPOL Red Notice

Regulation and compliance

In these constantly changing times, firms that deal with cryptoassets or have exposure to such firms, need to carefully consider all their systems and controls to ensure that they are compliant with all relevant AML and sanctions regulations.

How Gherson can assist

Gherson’s criminal litigation, regulatory and investigatory team are able to provide advice and assistance with AML and sanctions compliance, including in situations involving cryptoassets.

Additionally, the team has recently started a series of blogs on the regulation of crypto, with the aim of advising those who work in the compliance of this sector. Besides, our specialist regulatory and compliance team can guide individuals and companies through the FCA registration process and offer advice on relevant issues.

Please do not hesitate to contact us for further advice, send us an e-mail, or, alternatively, follow us on X, Facebook, or LinkedIn to stay up-to-date.

The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please do not hesitate to contact Gherson. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.

©Gherson 2025