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Montenegro’s Appellate Court overrules extradition decision for Terraform Labs co-founder Do Kwon

TL;DR

  • Montenegro’s Appellate Court overturned a decision to deport Terraform Labs co-founder Do Kwon to the U.S., citing legal procedure violations.
  • Do Kwon, arrested in Montenegro in 2023, faces extradition requests from both the U.S. and South Korea.
  • Terraform Labs, accused of fraud, collapsed in 2022, resulting in a $40 billion market loss.

In a significant development in the ongoing legal battle surrounding Terraform Labs co-founder Do Kwon, Montenegro’s Appellate Court overturned a lower court’s decision to extradite Kwon to the United States. The ruling, issued on March 5, marks another twist in the prolonged extradition process initiated after Kwon’s arrest in March 2023.

Background of the case

Do Kwon, a prominent figure in the cryptocurrency sphere and co-founder of Terraform Labs, has been embroiled in legal proceedings since his arrest in Montenegro in March 2023. The arrest triggered extradition requests from the United States and South Korea, with authorities seeking Kwon’s return to face criminal prosecution.

The Appellate Court of Montenegro’s latest ruling annulled the previous decision of the High Court of Podgorica, which had approved Kwon’s extradition to the United States. The appellate panel cited “significant violations of the provisions of criminal procedure” under local laws as the basis for its decision. According to the court, the High Court’s order to deport Kwon lacked clear and valid reasoning regarding crucial facts outlined in the extradition request.

Legal proceedings

This recent overruling adds another layer to the complex legal proceedings surrounding Kwon’s extradition. Previously, the Appellate Court of Montenegro had canceled the extradition approval for Kwon to either the U.S. or South Korea in December 2023. The court argued that the case required a retrial by the Podgorica Basic Court.

The High Court of Podgorica had initially determined the legal prerequisites for Kwon’s extradition in November 2023, leaving the final decision on his extradition to the Montenegrin Minister of Justice.

Terraform Labs and allegations

Terraform Labs, the company co-founded by Do Kwon, gained prominence for its Terra blockchain, which supported the Terra stablecoin and the associated Luna token. However, the company faced allegations of fraudulent activities, leading to the collapse of its operations in May 2022. 

The U.S. Securities and Exchange Commission (SEC) accused Terraform Labs and Kwon of orchestrating a fraudulent scheme that resulted in losing at least $40 billion from the market.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Benson Mawira

Benson is a blockchain reporter who has delved into industry news, on-chain analysis, non-fungible tokens (NFTs), Artificial Intelligence (AI), etc.His area of expertise is the cryptocurrency markets, fundamental and technical analysis.With his insightful coverage of everything in Financial Technologies, Benson has garnered a global readership.

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