The delivery procedure has been going on for many months now and seems to be coming to an end. The co-founder of Terraform Labs and accused fraudster, Do Kwon, is set to be extradited from Montenegro to his native South Korea following a ruling from Montenegro’s Appellate Court. This decision confirms an earlier ruling by the High Court of Podgorica, prioritizing South Korea’s extradition request over that of the United States.
Background of the Case
Do Kwon has been in custody in Montenegro since March 2023 after being arrested for attempting to travel to Dubai using a fake Costa Rican passport. This arrest followed Interpol’s issuance of a red notice for Kwon in September 2022, spurred by the $40 billion collapse of the Terra/LUNA ecosystem in May 2022. This collapse marked the beginning of a series of high-profile cryptocurrency failures, including the downfall of FTX, one of the world’s largest crypto exchanges.
Following Terra’s implosion, Kwon fled, leading to an extensive international manhunt. His arrest in Montenegro culminated in a four-month prison sentence for using falsified documents. Even after completing this sentence, Kwon remained in custody due to the ongoing extradition battle and the confiscation of his legitimate passport to prevent his escape.
Extradition Decision and Legal Battles
Thursday’s ruling by the Appellate Court of Montenegro is expected to conclude a prolonged legal struggle over Kwon’s extradition. Initially, South Korea and the U.S. both sought his extradition to face charges related to the Terra/LUNA collapse. Kwon had previously contested rulings favoring his extradition to the U.S., leading to a series of legal reversals and delays.
The Supreme Court of Montenegro had intervened to postpone an earlier decision to extradite Kwon to South Korea, following objections from the country’s top prosecutor. This intricate legal tug-of-war highlighted the complexities involved in high-profile international extraditions, especially in cases involving significant financial crimes.
Final Decision and Implications
Ultimately, the final decision on Kwon’s extradition lies with Montenegro’s Minister of Justice, as indicated by the Office of the Supreme State Prosecutor. This decision comes amid reports that Montenegro’s Prime Minister, Milojko Spajic, is personally invested in Terraform Labs, adding another layer of intrigue to the proceedings.
As of now, no specific date has been set for Kwon’s extradition to South Korea. The outcome of this high-stakes legal battle will be closely watched by international regulators and the cryptocurrency community, given the significant implications for financial crime enforcement and cross-border cooperation in tackling fraud within the crypto sector.
