In a significant twist in the ongoing legal saga involving Terraform Labs co-founder Do Kwon, the Appellate Court of Montenegro has overturned a previous decision by the High Court of Podgorica to extradite Kwon to the United States. This latest ruling, announced on March 5, marks another chapter in the complex extradition proceedings that have captured global attention since Kwon’s arrest in Montenegro in March 2023.
The decision to annul the extradition approval stems from what the Appellate Court described as “significant violations of the provisions of criminal procedure” in the local laws. The court highlighted a lack of “clear and valid reasons for decisive facts” concerning the extradition request from the US, where Kwon is wanted for several criminal offenses related to the collapse of the Terra blockchain ecosystem in May 2022.
This legal setback for the US authorities comes after both the US and South Korea sought Kwon’s extradition, sparking debate over whether he should be sent to his native country or the US. The case’s intricacies were further compounded when the Appellate Court previously canceled an extradition approval in December 2023, insisting on a retrial at the Podgorica Basic Court.
The High Court of Podgorica had previously determined in November 2023 that the legal requirements for Kwon’s extradition were met, leaving the final decision to the minister of justice of Montenegro. However, the latest ruling from the Appellate Court disrupts the extradition process, adding another layer of complexity to an already convoluted legal battle.
Terraform Labs, co-founded by Do Kwon, was behind the Terra blockchain and its associated stablecoin and Luna token. The project’s dramatic collapse in May 2022, allegedly due to fraud orchestrated by Kwon and Terraform Labs, erased approximately $40 billion from the cryptocurrency market, according to the U.S. Securities and Exchange Commission. This ongoing legal drama continues to unfold, with global implications for Kwon, Terraform Labs, and the broader cryptocurrency industry.
