In a legal twist, a Montenegro appeals court has overturned a recent ruling that ordered the extradition of cryptocurrency mogul Do Kwon, the founder of Terraform Labs, to the United States. Kwon, dubbed “the cryptocurrency king,” was arrested nearly a year ago on an international arrest warrant related to the $40 billion crash of Terraform Labs’ cryptocurrency, impacting global retail investors.
While both South Korea and the U.S. sought Kwon’s extradition from Montenegro, last month, the High Court in Montenegro decided in favor of the U.S. However, the Court of Appeals has now annulled this decision, citing procedural issues regarding the timing of extradition requests from the U.S. and South Korea. The lower court has been ordered to reevaluate the extradition process.
Kwon, facing fraud charges in the U.S., was arrested at Montenegro’s Podgorica Airport last year while attempting to travel to Dubai with a fake Costa Rican passport. The legal proceedings involve allegations of fraud and financial crimes related to the collapse of Terraform’s digital currencies in May 2022, causing a significant market value loss for TerraUSD and its counterpart, Luna.
Currently serving a four-month prison sentence in Montenegro for passport fraud, Kwon’s case adds complexity to the ongoing legal battle involving the cryptocurrency founder, the U.S., and South Korea. The final decision on his extradition remains uncertain.