Montenegro’s Constitutional Court has made a unanimous decision to reject Terraform Labs’ co-founder Do Kwon’s appeal regarding his extradition over legal issues, as reported by Korea JoongAng Daily on December 25. This ruling paves the way for Montenegro’s Justice Minister to determine Kwon’s extradition destination, which is likely to be the United States due to the ministry’s established stance on the matter.
Kwon, who is also wanted in his home country of South Korea, has been facing charges related to the collapse of the TerraUSD (UST) and Luna tokens in May 2022. He was apprehended in March 2023 after being on the run for months, during which he attempted to travel through Montenegro using a counterfeit passport, further complicating his legal troubles.
The United States has been actively seeking Kwon’s extradition in connection with the implosion of Terraform Labs’ stablecoin ecosystem. In June, a US court fined Kwon $4.5 billion after he failed to settle a civil lawsuit with the US Securities and Exchange Commission. However, South Korea has also expressed a strong interest in prosecuting Kwon, underscoring the global repercussions of the Terraform collapse. The Appellate Court has previously upheld a decision to prioritize South Korea’s extradition request over that of the US.
Former Montenegrin Justice Minister Andrej Milović has alleged that Prime Minister Milojko Spajić leveraged the extradition as a bargaining chip for a 30-year concession for the country’s airports with South Korea.
These developments highlight the complex legal battle surrounding Kwon’s extradition and the international implications of the Terraform collapse. As the saga continues to unfold, it remains to be seen where Kwon will ultimately face justice for his alleged involvement in the cryptocurrency scandal.