Do Kwon, Terra founder, successfully appeals against extradition to the United States

The ongoing saga surrounding Do Kwon, co-founder of Terraform Labs, took another twist as the Appellate Court of Montenegro once again overturned a previous decision to extradite him to the United States. The court issued a statement on March 5, annulling the High Court of Podgorica’s approval of Kwon’s extradition. The Appellate Court argued that the previous decision was marred by “significant violations of the provisions of criminal procedure” under local laws. The court panel stated that there were no clear and valid reasons for the order of the extradition request letter. This latest ruling adds to the lengthy extradition process for Kwon, who was arrested in Montenegro in March 2023. Both the U.S. and South Korea have requested his extradition, leading to heated debates over whether he should be sent to his native country. In December 2023, the Appellate Court of Montenegro had already cancelled the extradition approval for Kwon to either the U.S. or South Korea, arguing that the case should be retried by the Podgorica Basic Court. In November 2023, the High Court of Podgorica had determined the legal requirements for Kwon’s extradition, leaving the final decision to the Montenegro Minister of Justice. Terraform Labs, the company behind the Terra blockchain and its Terra stablecoin and Luna token, collapsed in May 2022 due to alleged fraud. The U.S. Securities and Exchange Commission claimed that Terraform Labs and Kwon orchestrated a fraudulent scheme resulting in the loss of at least $40 billion from the market.