South Korean cryptocurrency fugitive Do Kwon has been released from a Montenegro prison as the Supreme Court deliberates on extradition requests from both the United States and South Korea. Bloomberg reported his release on Saturday, March 23, as the Supreme Court halted his extradition and suspended lower court rulings.
Kwon faces fraud charges in both South Korea and the United States following the collapse of Terra, which led to a staggering loss of approximately $60 billion in market capitalization in 2022. Warden Darko Vukcevic stated over the phone that Kwon was released after serving his sentence for traveling with false documents. However, due to being a foreign citizen, his documents were confiscated, leading him to be taken to the Foreigners Police Station for further processing.
The decision to release Kwon reportedly stemmed from the Supreme Court Council, which is tasked with reviewing a ruling that could potentially approve or deny extradition to South Korea. Prosecutors in the United States seek to prosecute Kwon for his alleged involvement in the $40 billion collapse of the TerraUSD stablecoin in 2022. While penalties in South Korea are comparatively lighter, extradition to either country remains uncertain pending further court proceedings.
Confirming Kwon's release, his lawyer Goran Rodich stated that his passport had been confiscated to prevent him from leaving the country, as reported by state television. Kwon was subsequently transferred to a shelter for foreigners, with plans for his legal team to appeal for his continued freedom during the extradition deliberations.
The Supreme Court's intervention followed a challenge by Montenegro's chief prosecutor, citing procedural errors in the ruling favoring South Korea's extradition request. Further court considerations are required for extradition to either country, with no specific timeline provided following Friday's announcement. If extradited to the United States, Kwon could face multiple felony charges filed by prosecutors in March 2023, stemming from his arrest in Montenegro for using forged travel documents alongside his colleague and former CFO of Terraform Labs, Han Changjun. Both U.S. and South Korean authorities have submitted competing extradition requests, awaiting a final decision.
