In a recent development, the High Court in Podgorica, Montenegro has made a ruling stating that Do Kwon, co-founder and former CEO of Terraform Labs, should be extradited to his home country of South Korea instead of the United States. This decision is still subject to appeal.
The decision comes after an appeals court overturned the High Court’s previous ruling to extradite Kwon to the United States on March 5, citing significant violations of criminal procedure provisions. South Korea initially filed an extradition request in March 2023, which was initially rejected in favor of the U.S.’s request filed two days prior. Kwon has been in custody in Montenegro since his arrest at the Podgorica airport, where he was apprehended while trying to travel to Dubai using an allegedly fake Costa Rican passport.
According to a report by The Wall Street Journal, Montenegrin authorities were alerted to Kwon’s presence in the country by a tipster the day before his planned flight. Kwon had expressed his preference to be extradited to South Korea, stating that he wanted to be closer to his family. His lawyers also questioned the validity of the treaty that would allow his extradition to the United States. It is reported that Kwon could face a 40-year prison sentence in South Korea.
Kwon’s lawyers had requested that his trial in the United States be postponed until after his extradition to the country. The U.S. Securities and Exchange Commission (SEC) supported this request and asked for a delay in his trial until at least March 18. The SEC has filed charges against both Terraform Labs and Kwon in its complaint.
Terraform Labs’ chief financial officer, Han Chang-joon, who was arrested alongside Kwon at the airport, was extradited to South Korea in February. Terraform Labs filed for Chapter 11 bankruptcy in the United States on January 21. The issuer of Terra’s stablecoin and the LUNA governance token collapsed in May 2022. Kwon had not been seen since the collapse until his arrest in Montenegro, although he remained active on social media, with over 1 million followers on X (formerly known as Twitter).
It is worth noting that Kwon and Han reportedly resided in Serbia after leaving South Korea and even started a consulting business despite an Interpol red notice issued for Kwon.
Overall, this situation highlights the unique and fascinating crypto landscape in South Korea.