Prosecutors in Montenegro are seeking legal protection from the country's highest court after an appeal blocked the extradition of Terraform Labs co-founder Do Kwon to South Korea. The announcement made on March 21 revealed that prosecutors had requested intervention from the Supreme Court following the rejection of Kwon's appeal by the Court of Appeal. They argued that only the Supreme Court possessed the authority to make a definitive ruling on the case, citing procedural violations in the appeal process.
The extradition of Kwon has been a subject of deliberation in Montenegrin courts, with consideration given to requests from both the United States and South Korea. While a decision made on March 20 seemed to lean towards extradition to South Korea, prosecutors hinted at the possibility of the Supreme Court overturning this decision. They criticized the Court of Appeal for allegedly overstepping its powers and conducting a truncated procedure instead of a comprehensive one.
Kwon, a South Korean national, faces potential criminal charges in both his home country and the United States in connection with the collapse of Terraform Labs in 2022. The South Korean government has been actively pursuing legal action against individuals involved in cryptocurrency-related crimes since the Terra collapse. In contrast, prominent figures in the cryptocurrency industry in the United States, such as Sam Bankman-Fried and Changpeng Zhao, have encountered legal troubles related to their roles in companies like FTX and Binance.
Kwon's arrest in Montenegro in March 2023, on charges of using forged travel documents, resulted in a four-month prison sentence. He remains in custody as extradition requests from both the United States and South Korea are under consideration by Montenegro. Several individuals associated with Terraform Labs, including co-founder Hyun-seong Shin, have faced indictments in South Korea. Han Chang-joon, the former CFO of the company, was arrested alongside Kwon in Montenegro but was subsequently extradited to South Korea in February.
The legal proceedings surrounding Kwon's extradition underscore the complex international implications of cryptocurrency-related crimes and the challenges faced by authorities in coordinating legal actions across different jurisdictions.
