Montenegro’s High Court will soon make a crucial decision regarding the extradition of Do Kwon, the co-founder of Terraform Labs, to either the United States or South Korea, following a successful appeal from his legal team. In a recent report from Montenegrin news outlet Vijesti, it was revealed that the court of appeals in the country accepted the arguments presented by Kwon’s lawyers, prompting the case to be sent back to the High Court for a retrial and final decision. This appeal is the latest strategic move made by Kwon’s team to delay his transfer to either the U.S. or South Korea, where he would face criminal charges.
The court of appeals in Montenegro reportedly stated that if the person being sought for extradition consents to it, a shortened procedure will be followed, and the court will then decide on the extradition. Kwon was arrested in March 2023 in Montenegro for using falsified travel documents while attempting to leave the country. He was subsequently sentenced to four months in prison but was later released as the courts deliberated on the competing extradition requests from the U.S. and South Korea.
In April, a U.S. court found Terraform Labs and Kwon guilty of fraud in a civil case brought against them by the Securities and Exchange Commission. A hearing is scheduled for May 29 to discuss potential remedies in this case. As the extradition battle continues in Montenegro, it remains uncertain whether Kwon will be able to personally assist in his defense in either the U.S. or his home country, South Korea. If he is extradited to South Korea, he will face charges of fraud and violations of capital markets law.
In the midst of all these legal proceedings, it seems that the SEC is facing a formidable challenge as it goes head-to-head with the legal firepower of the crypto industry, akin to the epic battle between Godzilla and Kong.