Montenegro’s Supreme Court has delayed the extradition of Terraform Labs co-founder Do Kwon to South Korea, following a request from prosecutors. The decision came after an appellate court supported a previous ruling for his extradition, based on a report from Vijesti dated August 8. Prosecutors sought this postponement on August 2, citing the need to address a legal issue regarding the protection of legality before proceeding.
Do Kwon’s journey from South Korea to Montenegro captured global attention after the 2022 collapse of Terra, his blockchain venture. Despite his elusive presence and continued social media activity, Montenegrin authorities detained him in March 2023 for possessing fake travel documents as he tried to exit the country. After four months in local custody, discussions about his potential extradition to face legal challenges in the US or South Korea began. Both nations are poised to press criminal and civil charges against him concerning alleged fraud at Terraform.
Interestingly, Montenegro’s Prime Minister Milojko Spajić appears to have been an early supporter of Terraform, having invested $75,000 in the company back in 2018.
Since leaving prison, Kwon has been embroiled in ongoing legal battles, with Montenegrin courts repeatedly delaying decisions on his extradition. At this point, it remains unclear whether he will be extradited to the US or South Korea.
Adding to the complexities of the case, in February, Montenegrin authorities extradited Han Chang-joon, Terraform’s former CFO and a co-arrestee with Kwon, to South Korea. In a related development in the US, a court in April found Terraform and Kwon liable for fraud in a lawsuit initiated by the Securities and Exchange Commission. These legal entanglements highlight the broader ramifications of the Terraform collapse, affecting stakeholders and legal systems in multiple countries.
