Montenegrin Supreme Court Halts Do Kwon’s Extradition to South Korea
In a surprising turn of events, Montenegro’s Supreme Court has postponed the extradition of Do Kwon, the controversial co-founder of Terraform Labs, to South Korea. This decision adds another layer of complexity to the ongoing legal saga surrounding the embattled cryptocurrency entrepreneur.
The court’s ruling comes in response to a request filed by the Supreme State Prosecutor’s Office on August 2, seeking a review of potential legal violations in previous court decisions that had approved Kwon’s extradition. This latest development effectively puts on hold the recent decision by Montenegro’s appellate court to send Kwon to his native South Korea.
Do Kwon has been in Montenegrin custody since March 2023, when he was arrested for attempting to travel using forged documents. Since then, he has been at the center of a diplomatic tug-of-war between South Korea and the United States, with both countries seeking his extradition to face charges related to the $40 billion collapse of the Terra/LUNA ecosystem in May 2022.
The legal proceedings have been marked by a series of conflicting decisions. Initially, Montenegrin courts ruled in favor of extradition to the United States. However, this decision was later overturned in favor of South Korea, citing the country’s earlier request and the severity of the charges against Kwon, which include fraud and bribery.
Kwon’s defense attorney, Goran Radić, has criticized the continuous delays and multiple court decisions, describing them as a “judicial disgrace.” Radić also alleged that Montenegro’s Minister of Justice, Andrej Milović, had made an “illegal private promise” to extradite Kwon to the U.S. instead of South Korea.
Adding to the intrigue, it was reported earlier this year that Montenegro’s Prime Minister, Milojko Spajic, is a personal investor in Terraform Labs, raising questions about potential conflicts of interest in the case.
While Kwon’s legal battles in Montenegro continue, he faces additional challenges elsewhere. In April 2024, a New York jury found Kwon and Terraform Labs liable for civil fraud, resulting in a $4.5 billion settlement with the U.S. Securities and Exchange Commission. Despite this settlement, U.S. authorities are still pursuing criminal charges against him.
As the Supreme Court reviews the prosecutor’s request, Kwon will remain in detention in Montenegro. The court is expected to make a decision on the Request for the Protection of Legality within the legal deadline, though no specific timeframe has been provided.
