Terraform Labs co-founder Do Kwon is facing a potential roadblock in his extradition to South Korea, as Montenegrin prosecutors have challenged the decision and taken the case to the country’s Supreme Court. The prosecutors have requested a protection of legality before the Supreme Court, arguing that the appellate court violated procedure by rejecting an appeal from Kwon’s legal team. They believe that only the Supreme Court has the authority to make a legal decision in this case.
The Montenegrin courts have been considering whether to extradite Kwon to either the United States or South Korea, where he could face criminal charges related to the collapse of Terraform Labs. Initially, it seemed that Kwon would be extradited to South Korea after a decision on March 20. However, the prosecutors have suggested that the Supreme Court could change this decision with its verdict.
The prosecutors stated that the court conducted abbreviated proceedings instead of regular ones, which they argue goes against the law. They believe that the court exceeded its powers by making a decision on the extradition permit, as this is exclusively within the competence of the Minister of Justice.
Kwon, a South Korean national, appears to prefer extradition to his home country rather than the United States. The South Korean government has been imposing severe penalties on individuals involved in crypto-related crimes since the downfall of Terra in 2022. In contrast, high-profile figures from the crypto space in the United States, such as Sam Bankman-Fried, Changpeng Zhao, and Alex Mashinsky, have faced convictions, guilty pleas, or upcoming criminal trials for their roles at FTX, Binance, and Celsius, respectively.
In March 2023, Kwon was arrested in Montenegro for using falsified travel documents. He was subsequently sentenced to four months in prison and has been in custody while the country considers the extradition requests from the United States and South Korea.
South Korean authorities have also indicted several individuals associated with Terraform Labs, including co-founder Hyun-seong Shin. The firm’s former chief financial officer, Han Chang-joon, was arrested in Montenegro at the same time as Kwon but was extradited to South Korea in February.
US enforcement agencies are intensifying their efforts to combat crypto-related crimes, as evidenced by the ongoing legal battles and arrests involving prominent figures in the industry.