Montenegro court upholds extradition ruling (report)

The Constitutional Court of Montenegro has dismissed an appeal filed by Do Kwon, the South Korean cryptocurrency tycoon and co-founder of Terraform Labs, which is at the center of the catastrophic collapse of the stablecoin TerraUSD (UST) and the its symbol, Luna.

Kwon’s appeal, challenging his extradition decision, was unanimously rejected by the court.

Legal options narrow for Kwon

According to the report by local media outlet ‘Korea JoongAng Daily’, the court’s decision confirmed the previous decision in favor of Kwon’s extradition, with Justice Minister Bojan Božović making the final call on whether to extradite Kwon. ‘will face trial in his country of origin. South Korea or be sent to the United States.

Kwon’s appeal was rejected due to legal inconsistencies. The court also dismissed his arguments of procedural unfairness and violations of his rights.

Kwon has come under intense scrutiny since the May 2022 collapse of the stablecoin TerraUSD (UST) and its sister token, Luna, which caused a devastating market loss of $40 billion. Both the United States and South Korea have sought his extradition, accusing him of financial crimes including fraud and market manipulation.

After fleeing South Korea, Kwon traveled to several countries, including Singapore, the United Arab Emirates and Serbia, before being arrested in Montenegro in March 2023 for attempting to travel on a fake passport.

As such, the court’s latest ruling significantly narrows Kwon’s legal options to delay extradition, with analysts predicting that Montenegro could send him to the United States, where he will face charges related to Earth’s collapse – Moon.

Kwon’s legal situation is further complicated by a massive civil penalty imposed by the US Securities and Exchange Commission (SEC). In June 2024, Terraform Labs and Kwon agreed to a $4.5 billion settlement with the securities agency, including heavy fines for Kwon personally, as well as a ban from engaging in crypto transactions.

Kwon’s fate hangs in limbo

Despite the ruling, Kwon’s legal team is expected to continue fighting his extradition, particularly to the United States, where the charges are more extensive. Meanwhile, South Korea has called for a faster resolution while expressing concern about possible human rights violations due to delays in the extradition process.

With the ruling, Kwon’s fate is now in the hands of Montenegro’s justice minister, who will determine his next legal steps.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

LIMITED OFFER for CryptoPotato Readers on Bybit – Use this link to register and open a FREE $500 position with any currency!