The legal ruling regarding the extradition of cryptocurrency mogul Do Kwon from Montenegro has been returned to a lower court after Montenegro’s Supreme Court approved the protection of legality of a prior decision from a lower court approving Kwon’s extradition to South Korea. Both the United States and South Korea have filed competing claims for Kwon’s extradition, with Montenegro now needing to decide which claim to prioritize. Kwon’s legal team is pushing for extradition to South Korea first, where analysts believe he may receive a lighter sentence. The appellate court had rejected an appeal from Kwon’s legal team and instead put the decision in the Supreme Court’s hands, which the Supreme Court said is not its responsibility. The decision on Kwon’s extradition will now return to the High Court in Podgorica.
Kwon was first arrested in Montenegro in March 2023 for possession of falsified travel documents. Since his arrest, he has been free to travel within the country until a decision is reached on his extradition case. Both the United States and South Korea seek justice from Kwon for the collapse of the Terra network in May 2022, which resulted in $40 billion of investor value being wiped out across its Terra (LUNA) and TerraUSD (UST) cryptocurrencies. The U.S. Securities and Exchange Commission (SEC) has also alleged that Kwon and his company misled investors about the network, including its adoption as a payments technology. The SEC won the case with a Manhattan jury finding Kwon and his company liable for fraud.
In response to the verdict, a Terraform Labs spokesperson expressed disappointment and stated that they believe the SEC does not have the legal authority to bring the case. They are considering their options and next steps in light of the verdict. The courts will now need to determine the legal conditions for extradition of Kwon to both the United States and South Korea. The decision on Kwon’s extradition will ultimately be made by the competent minister, not the court, after the High Court in Podgorica has reviewed the matter. Kwon’s legal team will continue to advocate for his extradition to South Korea first, where they hope for a more lenient sentence for their client.
Overall, the legal battle over Do Kwon’s extradition from Montenegro continues as the courts navigate competing claims from the United States and South Korea. Kwon remains free to travel within Montenegro until a decision is reached on his extradition case. The collapse of the Terra network in May 2022 has led to legal action by both countries seeking justice for investors who lost billions in the cryptocurrency meltdown. The SEC has accused Kwon and his company of fraud and misleading investors, with a Manhattan jury finding them liable for these charges. Terraform Labs is considering its options following the verdict and will continue to defend their position regarding the SEC’s legal authority in bringing the case. The fate of Do Kwon now lies in the hands of the High Court in Podgorica, which will ultimately decide on his extradition to either the United States or South Korea.
