The High Court in Podgorica, Montenegro has issued a ruling stating that Do Kwon, co-founder and former CEO of Terraform Labs, should be extradited to his home country of South Korea rather than the United States, as reported by various media outlets. However, it is important to note that this decision is still subject to appeal.
Previously, an appeals court had overturned the High Court’s initial decision to extradite Kwon to the United States on March 5, citing significant violations of criminal procedure provisions.
South Korea had filed an extradition request in March 2023, which was initially declined in favor of the United States’ request, submitted two days earlier. Kwon has been detained in a Montenegrin prison since his arrest at Podgorica airport, where he was trying to travel to Dubai using an allegedly fake Costa Rican passport. The Wall Street Journal reported that Montenegrin authorities had been made aware of Kwon’s presence in the country by a tipster the day before his intended flight.
According to The WSJ, Kwon had expressed a preference to be extradited to South Korea, as he wanted to be closer to his family. His lawyers also raised doubts about the validity of the treaty that would allow his extradition to the United States. It is reported that Kwon could face up to 40 years in prison in South Korea.
Kwon’s lawyers had requested that his trial in the United States be postponed until after his extradition to that country. The U.S. Securities and Exchange Commission (SEC) also supported this request, asking for his U.S. trial to be delayed 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 with Kwon at the airport, was extradited to South Korea in February.
In January, Terraform Labs filed for Chapter 11 bankruptcy in the United States. The issuer of Terra’s stablecoin and the LUNA governance token had collapsed in May 2022. Kwon had not been seen since the collapse until his arrest in Montenegro, although he maintained a presence on social media and had over 1 million followers.
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.
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