The extradition of Terraform Labs co-founder Do Kwon from Montenegro has once again been thwarted, as the Montenegrin Court of Appeal upheld an appeal by Kwon's defense lawyers. The decision, announced officially by the court, was made at a collegiate bench session on February 7. This ruling nullifies the previous decision by the Podgorica High Court on December 29, 2023, and remands the case back to the lower court for retrial and judgment.
The Court of Appeal cited "serious breaches of criminal procedure rules" in the previous extradition decision, pointing out that the wording was unclear and lacked decisive factual basis. Due to these flaws, the court found the previous decision to be unsubstantiated and ordered its annulment. Consequently, the case is now set for reconsideration at the court of first instance.
This latest development adds to the protracted legal saga surrounding Terra's extradition proceedings since its collapse in May 2022. Terraform Labs and its co-founder Kwon stand accused of orchestrating a massive fraud scheme that resulted in substantial losses for investors, as alleged by financial regulators in both South Korea and the United States. Kwon, a South Korean citizen, was apprehended in Montenegro in March 2023 while attempting to depart the country using counterfeit travel documents. He remains sought after by authorities in South Korea and the United States.
