Victory for Do Kwon: U.S. extradition appeal succeeds

Terraform Labs co-founder Do Kwon has clinched a significant victory with his successful second appeal to evade extradition to the United States, as per the latest announcement from the appellate court of Montenegro, unveiled on Thursday.

Legal Maneuvers and International Tussle

The unfolding saga surrounding Do Kwon has become a battleground involving the US, Montenegro, South Korea, and Kwon’s legal team, each vying to determine the ultimate destination for the embattled founder. Since March 2023, Kwon has remained in custody in Montenegro, with both South Korea and the US seeking his extradition.

In December, Kwon’s extradition to the US was greenlit, prompting him to launch an appeal in the Montenegro court, where he initially emerged victorious. However, the tables turned when the High Court of Podgorica overturned Kwon’s appeal and endorsed his extradition.

Thursday’s ruling by the appellate court highlighted “significant violations” in the extradition order issued by the High Court. Notably, the court underscored the oversight in considering the sequence of extradition requests, suggesting that South Korea may have initiated extradition proceedings prior to the US.

While the legal battle rages on, Montenegrin authorities have already handed over Terraform’s chief financial officer, Han Chang-joon, to South Korea earlier this week. Notably, Chang-joon, unlike Kwon, does not currently face any charges in the US.

Legal Proceedings in the US

Meanwhile, in the United States, the Securities and Exchange Commission (SEC) had scheduled a trial against Kwon to commence last month. However, the extradition delay prompted a postponement, pushing the trial to March. Terraform Labs, co-founded by Kwon, is also implicated in the case.

US District Judge Jed Rakoff, overseeing the proceedings, emphasized that there would be no further delays, asserting that the trial would proceed regardless of Kwon’s presence. Rakoff’s order also noted Kwon’s purported consent to extradition, signaling a potential breakthrough in the legal impasse.

Kwon is facing a litany of criminal charges in the US, including allegations of wire fraud and conspiracy. Under federal law, the criminal case against Kwon could proceed even in his absence if he knowingly and voluntarily waived his right to be present.

Despite the legal complexities and international wrangling, the resolution of Kwon’s extradition appeal marks a significant milestone in the protracted legal saga.