The Montenegro Court of Appeals rejects the US request and decides to extradite Do Kwon to South Korea.
Historical Background and Accusations
Do Kwon is wanted by authorities in two countries due to his alleged involvement in the collapse of the Terra/LUNA system in May 2022, resulting in losses of $40 billion. This incident was the first in a series of notable bankruptcies in the crypto industry, including that of FTX, the second largest cryptocurrency exchange in the world at the time.
Arrest and Detention
After the collapse of Terra, Do Kwon went into hiding. In September 2022, Interpol issued a red notice for him. Six months later, in March 2023, Kwon was arrested in Montenegro for attempting to use a fake Costa Rican passport to travel to Dubai.
He was initially sentenced to four months in prison for using false documents but remained in custody until his release on bail in March of this year. With his real passport confiscated, he was unable to leave the country.
Judicial Decisions and Conflicts
Thursday’s decision could finally mark the end of a series of legal debates on where Do Kwon should be extradited. South Korea had submitted its extradition request prior to the United States. Kwon managed to challenge the initial decisions to send him to the United States.
However, when the High Court of Podgorica ruled in favor of South Korea, the country’s Supreme Court intervened to delay the extradition, after the Attorney General claimed the court’s decision exceeded its jurisdiction. Several court decisions have overturned previous extradition rulings to either of the two countries.
Final Decision Pending
While the current decision appears to be final, the final decision on Do Kwon’s extradition will rest with the Minister of Justice of Montenegro, according to the Supreme State Prosecutor’s Office. It is worth noting that Montenegro’s Prime Minister, Milojko Spajic, is a personal investor in Terraform Labs, as reported by Bloomberg earlier this year.
