Montenegro’s High Court will make a crucial decision regarding the extradition of Terraform Labs co-founder, Do Kwon, to either the United States or South Korea, following a successful appeal from his legal team. In a report by Montenegrin news outlet Vijesti on May 24, it was revealed that the court of appeals had accepted the arguments presented by Kwon’s lawyers. As a result, the question of extradition has been sent back to the High Court for a retrial and final decision. Kwon’s team has been using various legal tactics to delay his transfer to either the U.S. or South Korea, where he would face criminal charges.
According to reports, the court of appeals stated, “If the person whose extradition is sought gives his consent to extradition, it is a shortened procedure that has to be applied and in which case the court decides on extradition.” Kwon was arrested in Montenegro in March 2023 for using falsified travel documents while attempting to leave the country. He was subsequently sentenced to four months in prison but was released as the courts considered extradition requests from the U.S. and South Korea.
In April, a U.S. court found Terraform Labs and Kwon liable for fraud in a civil case filed by the Securities and Exchange Commission. A hearing is scheduled for May 29 to discuss proposed remedies from both parties. As the extradition proceedings continue in Montenegro, it remains uncertain whether Kwon will be able to personally assist in his defense in the U.S. or South Korea, his home country. If he is extradited to South Korea, Kwon will face charges of fraud and violations of capital markets law.
In an unrelated matter, the SEC is currently engaged in a fierce legal battle against the crypto industry’s legal firepower in the case of Godzilla vs. Kong.