Montenegro Court Upholds Do Kwon’s Extradition to South Korea, Rejecting U.S. Bid

The Appellate Court of Montenegro has affirmed a lower court’s decision to extradite Terraform Labs co-founder Do Kwon to his native South Korea, rebuffing a competing request from the United States. This ruling, announced on August 1, 2024, marks a significant development in the ongoing legal saga surrounding the controversial cryptocurrency mogul.

Kwon, often referred to as “the cryptocurrency king,” has been at the center of legal scrutiny since the catastrophic collapse of the Terra/LUNA ecosystem in May 2022. The incident resulted in approximately $40 billion in losses, sending shockwaves through the cryptocurrency market and affecting numerous businesses and investors.

The legal pursuit of Kwon intensified in March 2023 when he was arrested in Montenegro while attempting to board a flight to Dubai using falsified Costa Rican travel documents. Since then, both South Korea and the United States have been vying to secure his extradition, leading to a series of conflicting court decisions and appeals.

The latest ruling by the Montenegro Appellate Court is expected to fast-track Kwon’s repatriation to South Korea. According to court statements, there is no further avenue for appeal against this decision. Goran Rodic, Kwon’s legal representative, indicated that Montenegro, with Interpol’s assistance, aims to expedite the extradition process.

In the United States, Kwon and Terraform Labs face serious charges brought by the Securities and Exchange Commission (SEC). In April 2024, a U.S. court found them liable for fraud, resulting in a $4.47 billion settlement with the SEC in June. This settlement included substantial disgorgement fines, civil penalties, and interest payments.

The extradition decision comes amid speculation about potential connections between Terraform Labs and Montenegro’s Prime Minister, Milojko Spajic. Recent reports have suggested that Spajic was an early investor in the company, though he has strongly denied these claims.

While this ruling appears to conclude the extradition debate, it’s worth noting that the final decision ultimately rests with Montenegro’s Minister of Justice. As the crypto community and legal observers await further developments, the case continues to highlight the complex interplay between international law enforcement and the rapidly evolving world of digital assets.