The Appellate Court of Montenegro has overturned the decision made by the High Court of Podgorica regarding the extradition approval of Do Kwon, co-founder of Terraform Labs, to either the United States or South Korea. The decision to annul the extradition approval was officially announced on December 19.
The High Court of Podgorica had initially set the stage for Kwon’s extradition in November 2023, leaving the final call to Montenegro’s minister of justice. However, the Appellate Court determined that the previous decision suffered from a “significant violation of the provisions” outlined in Montenegro’s Criminal Procedure Code. The court emphasized that the decision lacked clear reasons for decisive facts, leading to its cancellation.
Kwon’s defense successfully appealed the extradition decision, resulting in the case being sent back to the Podgorica Basic Court for a retrial. The latest legal maneuver raises questions about the initial handling of the extradition request.
Do Kwon Faces Allegations of Fraud
Do Kwon, a co-founder and former CEO of Terraform Labs, is known for his involvement with the Terra blockchain, recognized for the Terra stablecoin and Luna token. The collapse of Terraform Labs in May 2022 prompted the United States Security and Exchange Commission to accuse Kwon and the company of orchestrating a fraudulent scheme, causing a market value loss of at least $40 billion.
Kwon’s troubles escalated when he was arrested in Montenegro in March 2023 for attempting to use falsified travel documents. Both the United States and South Korea swiftly sought his extradition. Prosecutors in both countries indicated the possibility of multiple sentences for the Terraform Labs co-founder.
In a parallel legal saga, Daniel Shin, another co-founder of Terraform Labs, faced accusations of defrauding investors. Shin, who claimed to have left Terraform in 2020 for business reasons, distanced himself from the collapse during a trial before the Seoul Southern District Court in South Korea in October 2023. The legal entanglements surrounding Terraform Labs and its co-founders continue to unfold, captivating the crypto community’s attention.