- Terraform Labs co-founder Do Kwon has avoided immediate extradition after Montenegro’s Appellate Court overturned an earlier ruling
- The court cited significant breaches and unclear reasoning from prosecutors
- The case has been returned to the Montenegrin High Court, with the ultimate decision resting with the Montenegro justice minister
Terraform Labs co-founder Do Kwon has dodged imminent extradition to the US or South Korea following an appeals court decision in Montenegro. The Appellate Court in Podgorica overturned a previous ruling, citing “significant breaches of criminal proceedings” and unclear reasoning for its decision. The two countries are fighting to prosecute Kwon, who denies the charges against him.
Case Goes Back to High Court
Kwon’s fate looked to have been sealed on December 1 when the Montenegrin High Court ruled that he should be extradited, although the destination was not stated. Following the successful appeal, the case will now be sent back to the Montenegrin High Court for further review, with the Montenegro justice minister the ultimate arbiter over the Kwon’s fate.
The appeals court’s decision comes after Korean officials ruled earlier this month to extradite the South Korean from Montenegro, citing multiple fraud charges connected to the collapse of the UST stablecoin in 2022. Both the US and South Korea have indicted Kwon on charges related to the TerraUSD collapse, which led to losses exceeding $50 billion, with Kwon offering consistent reassurances about the project’s strength in the weeks leading up to the crisis.
US and Korea Want Their Pound of Kwon
In February, the US Securities and Exchange Commission initiated proceedings against Kwon and Terraform Labs, accusing him of masterminding a multi-billion-dollar crypto asset securities fraud and concealing information about the protocol’s stability.
Simultaneously, Korean law enforcement pursued Kwon for violating capital market rules through Terraform Labs, leading to an arrest warrant issued against him and founding member Nicholas Platias by the Seoul Southern District Prosecutor’s Office’s Financial and Securities Crime Unit.
Kwon has consistently denied the allegations levied against him, but there are plenty still nursing losses who believe otherwise.
