Terraform Labs co-founder Do Kwon has had his appeal rejected by a court in Montenegro, which means his extradition to South Korea could proceed. The Appellate Court of Montenegro upheld a previous decision by the country’s high court, stating that Kwon could be extradited to South Korea, where he holds citizenship. If the extradition goes ahead, Kwon could face multiple criminal charges. The court stated that South Korea’s request for extradition arrived before the US’s request, thus allowing Kwon to be extradited to South Korea. Kwon was arrested in Montenegro in March 2023 for using falsified travel documents and has since been at the center of competing extradition requests from the United States and South Korea.
In the US, Kwon faces eight felony charges, and it is likely that the criminal case against him will proceed even if he is unable to appear in person. In February, a Montenegrin court ruled that Kwon should be extradited to the US, but his lawyers successfully appealed that decision in March, leading to South Korea’s claim taking precedence.
During Kwon’s tenure at Terraform Labs, the company collapsed in May 2022, partly due to its mishandling of TerraUSD (UST) and Luna (LUNA) tokens. The platform’s downfall likely contributed to a downturn in the crypto market in 2022, with several companies declaring bankruptcy or collapsing.
It remains uncertain what legal avenues Kwon’s lawyers have to contest the extradition to South Korea. The country’s government has been imposing severe penalties on individuals involved in crypto-related crimes following the collapse of Terra.