A court judgment has approved the extradition of Do Kwon, the disgraced co-founder of Terraform Labs, from Montenegro to South Korea. The decision denies a request for extradition from the United States.
CoinDesk reported on Thursday that the Appellate Court of Montenegro upheld a previous decision by the High Court of Podgorica to return Kwon to his native country, South Korea, rather than the United States, which are both seeking his extradition.
There is a likelihood that the most recent decision will conclude the ongoing dispute regarding Kwon’s extradition destination. In spite of his prior successful appeals against U.S. extradition, the Supreme Court of South Korea postponed the decision to extradite him to that country. The Office of the Supreme State Prosecutor has determined that the Minister of Justice of Montenegro will be responsible for the final decision regarding Kwon’s extradition.
As of now, there is no established date for Kwon’s extradition. The litigation against Terraform Labs and Do Kwon has been ongoing for more than two years. A United States District Court ruled in April that Terraform Labs and Kwon defrauded investors during the startling collapse of stablecoin TerraUSD. This event resulted in the loss of over $40 billion in investor wealth in a single week and the initiation of a cryptocurrency bear market.
Terraform Labs entered into a civil resolution with the Securities and Exchange Commission (SEC) in June following its conviction. The settlement totaled $4.47 billion. in accordance with an additional article published by Benzinga. Included in the judgment are a $420 million civil sanction and $4.05 billion in disgorgement plus interest.
Kwon disappeared subsequent to Terra’s collapse. Interpol issued a red notice for him in September 2022. In March 2023, he was apprehended in Montenegro for attempting to travel to Dubai using a forged Costa Rican passport. Although he was initially sentenced to four months in prison for the use of falsified documents, Kwon remained in custody until his release on probation in March of this year.
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