U.S. prosecutors are set to contest the recent decision by the Montenegrin High Court regarding the extradition of Terraform Labs' CEO, Do Kwon, to South Korea.
The U.S. Department of Justice (DOJ) informed Bloomberg on March 7 that it intends to pursue extradition authority in accordance with relevant international agreements, bilateral agreements, and Montenegrin law. This move underscores the commitment to upholding the rule of law across borders.
The extradition request for Kwon was initially filed by both South Korea and the United States in March 2023. However, there has been ongoing disagreement between the two countries over the sequence of extradition proceedings.
Despite a February 21 ruling by the Podgorica High Court in favor of Kwon's extradition to the United States, the decision was later overturned by the Montenegrin Court of Appeal. The appeal court cited significant procedural violations, effectively reinstating South Korea's extradition request. The United States now has the option to appeal to the Montenegrin Supreme Court, the highest judicial authority in the country.
Kwon faces a litany of charges in both the United States and South Korea, including allegations of fraud and market manipulation related to the collapse of the Terra ecosystem, valued at $40 billion. In South Korea, additional charges pertain to fraud and violations of capital markets regulations. Despite the impending legal proceedings, Kwon's legal team has expressed his preference for extradition to South Korea, where he faces a lengthy prison sentence, as it would allow him to remain closer to his family.
