Do Kwon, the founder of Terra, successfully appeals against extradition to the United States.

The ongoing saga surrounding Do Kwon, co-founder of Terraform Labs, took another twist as the Appellate Court of Montenegro overturned a previous decision to extradite him to the United States. In an official statement, the court stated that the High Court of Podgorica had allowed Kwon’s extradition for criminal prosecution, but this decision was now annulled due to significant violations of local criminal procedure laws. The Appellate Court argued that there were no clear and valid reasons for the previous order. This latest development adds to the lengthy extradition process that began when Kwon was arrested in Montenegro in March 2023. Both the U.S. and South Korea have requested his extradition, leading to debates over whether he should be sent to his native country. The Appellate Court had previously canceled Kwon’s extradition approval in December 2023, calling for a retrial at the Podgorica Basic Court. The final decision on Kwon’s extradition lies with the minister of justice of Montenegro. Terraform Labs, the company behind the Terra blockchain, experienced a collapse in May 2022 due to alleged fraud, resulting in a loss of at least $40 billion from the market.