Montenegro court rejects Do Kwon's extradition appeal

Montenegro’s Constitutional Court unanimously rejected Terraform Labs’ co-founder Do Kwon’s appeal regarding a verdict on his extradition over legal issues, Korea JoongAng Daily reported on Dec. 25.

The decision clears the path for Montenegro’s Justice Minister to determine Kwon’s extradition destination, which is now expected to be the US due to the ministry’s established stance, the report added.

Kwon is also wanted in his home country of South Korea, where authorities have pursued him on charges linked to the high-profile collapse of the TerraUSD (UST) and Luna tokens in May 2022.

Battle for extradition

Kwon was apprehended in March 2023 after being on the run for months. He was attempting to travel through Montenegro using a counterfeit passport, further complicating his legal troubles.

The US has been particularly vocal in pursuing Kwon, seeking to hold him accountable for his role in the implosion of Terraform Labs’ stablecoin ecosystem. A US court fined Kwon $4.5 billion in June after failing to settle the civil lawsuit with the US Securities and Exchange Commission.

However, South Korea has also signaled strong interest in prosecuting the crypto mogul, highlighting the global ramifications of the Terraform collapse. The Appellate Court previously upheld a decision to prioritize South Korea’s extradition request over the US.

However, former Montenegrian Justice Minister Andrej Milović argued that Prime Minister Milojko Spajić used the extradition as leverage for a 30-year concession for the country’s airports with South Korea.