Do Kwon extradition halted by Montenegro Supreme Court ruling

The Supreme Court of Montenegro has postponed the extradition of controversial Terraform Labs founder Do Kwon to South Korea.

The decision came after the Supreme State Prosecutor’s Office requested a legal review on August 2. The prosecution expressed concerns about possible legal violations in previous court decisions approving Kwon’s extradition.

Kwon, who faces charges in both South Korea and the United States over an alleged $40 billion cryptocurrency scam, has been caught in the middle of a legal spat between the two countries and Montenegro.

Montenegro’s Vijesti newspaper also helped with this news.

Do Kwon timeline

Extradition decisions have been going back and forth for some time. In March 2023, Do Kwon was arrested in Montenegro for trying to travel with false documents. He was given a four-month prison sentence, during which time he was subject to multiple extradition requests from the US and South Korea.

Courts in Montenegro have made multiple decisions regarding the extradition of a specific individual. Initially, they ruled in favor of the United States, but were later overturned in favor of South Korea. This change was influenced by South Korea’s earlier request and the serious charges against the individual, including fraud and bribery.

In March 2024, Montenegrin authorities went so far as to approve the extradition of the co-founder of Terraform Labs to South Korea.

Kwon’s legal troubles extend beyond his extradition battles. In April 2024, a New York jury found him and his company liable for civil fraud and a $4.5 billion settlement was reached with the SEC. Despite the settlement, U.S. authorities continue to pursue criminal charges.

The Supreme Court’s latest move to halt the extradition adds another layer of complexity to Kwon’s legal saga, with his defence arguing that changing the final ruling is an abuse of legal procedures and highlights inconsistencies in the Montenegrin judiciary’s handling of the case.

Kwon will remain in custody while the Supreme Court considers the request.