South Korean crypto fugitive Do Kwon has been released from prison in Montenegro as the Supreme Court deliberates on extradition requests from the United States and South Korea. Kwon, the co-founder of Terraform Labs, was released on Saturday following a decision by the Council of the Supreme Court.
Release amid extradition review
The decision to release Kwon came from the Council of the Supreme Court, which is reviewing a decision regarding his extradition to South Korea. The Supreme Court halted Kwon’s extradition, suspending a lower court’s ruling. Kwon, facing fraud allegations in both South Korea and the U.S., had been detained in Montenegro in connection with the collapse of Terra Luna, resulting in the loss of approximately $60 billion in market value in 2022.
Kwon’s legal battle involves extradition requests from the United States and South Korea. In the U.S., prosecutors seek to prosecute him for the collapse of the TerraUSD algorithmic stablecoin, amounting to $40 billion in losses. Meanwhile, South Korean authorities are pursuing charges against him regarding the Terra Luna collapse.
Ongoing court deliberations
While Kwon has been released from prison, the extradition process remains unresolved. The Supreme Court’s action follows a challenge by the chief prosecutor in Montenegro, who cited procedural errors in the rulings favoring South Korea’s extradition request. Extradition to either country awaits further court deliberations, with no specified timeline provided after the announcement on Friday.
Kwon’s lawyer confirmed his release but noted that his passport had been withheld to prevent him from leaving the country. Kwon has been relocated to a shelter for foreigners, with plans to appeal to a court for him to remain free until a final extradition ruling is made. Should he be extradited to the United States, Kwon would likely face eight felony charges filed by prosecutors in March 2023.
