The unfolding legal proceedings surrounding Do Kwon, co-founder of Terraform Labs, reached a new development as a court in Montenegro approved his extradition either to South Korea or the United States. The official statement released by the Podgorica High Court on November 24 confirms the court's approval, indicating that the necessary legal prerequisites for extradition have been met.
The court's decision regarding Kwon's extradition to either the United States or South Korea now awaits final approval from Montenegro's Minister of Justice. This latest step emphasizes that the ultimate extradition judgment rests in the hands of the Minister of Justice based on the court's endorsement.
Previously, Kwon faced legal ramifications in Montenegro after being found guilty of attempting to use a counterfeit passport in an endeavor to flee to Dubai on a private jet, resulting in a four-month prison sentence. Reports from June 2023 had indicated that Kwon was accused of attempting to exit the country utilizing a forged Costa Rican passport. The court’s statement specified that any eventual extradition, if permitted by the Attorney General, would be contingent on executing previously announced criminal penalties linked to fraudulent documentation.
Kwon's arrest in March 2023 in Montenegro stemmed from his involvement in the collapse of the $40 billion Terra ecosystem in May 2022. Subsequently, extradition requests came from both the United States and South Korea, with potential sanctions and sentences looming over Kwon for various alleged crimes. In the United States, Kwon faces a civil lawsuit from the U.S. Securities and Exchange Commission and multiple criminal charges from the Department of Justice, relating to issues surrounding TerraUSD and LUNA. If extradited to South Korea, reports suggest he might confront up to 40 years of imprisonment, as most of the alleged crimes were purportedly committed there.
Recent reports indicated that Kwon's appeal was rejected by Montenegro's Supreme Court, compelling him to remain detained. Allegedly held in Spuz prison near Podgorica, Kwon reportedly has limited daily outdoor access. European officials have described the prison as confined and inadequately ventilated.
