United States prosecutors are set to challenge the recent decision made by the Montenegrin high court regarding the extradition of Do Kwon, the former CEO of Terraform Labs, to South Korea. The U.S. Department of Justice (DOJ) stated that it will continue to pursue Kwon’s extradition based on international agreements and Montenegrin law, as reported on March 7. Both South Korea and the U.S. have filed extradition requests for Kwon since March 2023, but a dispute over priority has arisen.
Initially, following a ruling from the High Court in Podgorica on February 21, Kwon was scheduled to be extradited to the United States. However, the Montenegro Appeals Court overturned this ruling two weeks later, citing significant procedural violations. As a result, Kwon’s extradition seems to be leaning towards South Korea once again.
According to Montenegro’s judicial system, the U.S. can appeal to the Supreme Court of Montenegro, which holds the highest authority in the country, above the Montenegro Appeals Court.
Kwon is facing eight charges in the U.S., including fraud and market manipulation, related to the $40 billion collapse of the Terra ecosystem. In South Korea, he is accused of fraud and breaching capital markets laws.
Kwon’s lawyers have previously expressed his preference for extradition to South Korea, as it would allow him to be closer to his family, despite the possibility of facing a 40-year prison term there.
Cointelegraph reached out to the DOJ for additional comments.
In related news, Do Kwon previously stated that the SEC’s extradition request was impossible.
South Korean prosecutors had issued an arrest warrant for Kwon in September 2022. He remained out of sight until March 2023 when he was apprehended by Montenegrin authorities for carrying a counterfeit Costa Rican passport.
Although Kwon was briefly released on bail, he spent at least four months in prison due to the passport incident before being transferred to extradition custody.
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