In a significant legal development, Montenegro has decided to extradite Terraform Labs co-founder Do Kwon to South Korea, turning down a competing request from the United States. Kwon, who has been in custody in Montenegro since March 2023 for using a fake passport, is wanted by both nations for his role in the dramatic collapse of the Terra/LUNA ecosystem.
Appellate Court Ruling Favors South Korea
On Thursday, the Appellate Court of Montenegro upheld a prior ruling from the High Court of Podgorica, determining that Kwon should face charges in South Korea. This decision overrides a competing request from the United States, which also sought his extradition to face charges related to the collapse of the Terra/LUNA ecosystem, a debacle that wiped out $40 billion in market value in May 2022.
The Background of Do Kwon’s Arrest and Legal Battles
Do Kwon has been under custody in Montenegro since March 2023, following his arrest for attempting to travel to Dubai using a fake Costa Rican passport. His arrest came six months after Interpol issued a red notice for him in September 2022. Kwon was initially sentenced to four months for using falsified documents but remained in detention until he was released on bail in March this year. The court confiscated his real passport to prevent him from fleeing the country.
Legal Proceedings and International Tug-of-War
The decision to extradite Kwon to South Korea rather than the U.S. has been the subject of intense legal debate. Kwon managed to delay his extradition to the U.S. through a series of legal maneuvers. The High Court of Podgorica’s initial decision to send him to South Korea was temporarily halted by Montenegro’s Supreme Court after the country’s top prosecutor argued that the court had exceeded its authority.
Final Decision Pending from Montenegro’s Minister of Justice
Despite the court’s ruling, the ultimate decision on Kwon’s extradition rests with Montenegro’s Minister of Justice. This final step in the process underscores the complexity and high stakes of this international legal case. Bloomberg reported earlier this year that Montenegro’s Prime Minister, Milojko Spajic, is a personal investor in Terraform Labs, adding another layer of intrigue to the proceedings.
As of now, no date has been set for Kwon’s extradition to South Korea, leaving the timeline for his transfer and subsequent trial uncertain.
Also Read: Terra Hack: $5 Million Stolen Amid Terraform Labs Bankruptcy Crisis
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