Do Kwon, a notorious cryptocurrency fugitive from South Korea, has been released from prison in Montenegro while the Supreme Court deliberates on extradition requests from the United States and South Korea. According to a report by Bloomberg, Kwon was released on Saturday, March 23. The Supreme Court has temporarily halted his extradition to South Korea, overturning a previous ruling by a lower court.
Kwon, who co-founded Terraform Labs, is currently facing fraud allegations in both South Korea and the United States. These allegations stem from the collapse of Terra Luna, which resulted in a staggering $60 billion loss in market value in 2022. The prison director, Darko Vukcevic, confirmed Kwon’s release and mentioned that the decision came from the Council of the Supreme Court. This council is responsible for reviewing the extradition decision that will determine whether Kwon will be sent back to his home country of South Korea.
The penalties for fraud in South Korea are comparatively milder than those in the United States. Prosecutors in the US are seeking to charge Kwon for the $40 billion collapse of the TerraUSD algorithmic stablecoin in 2022. Kwon’s lawyer, Goran Rodic, also confirmed his client’s release and stated that Kwon’s passport has been confiscated to prevent him from leaving the country. It was later reported that Kwon was moved to a shelter for foreigners, and Rodic plans to appeal to a court to allow Kwon to remain free until a final decision on extradition is made.
The Supreme Court’s decision to halt extradition follows a challenge by the chief prosecutor of Montenegro, who pointed out procedural errors in the previous rulings favoring South Korea’s extradition request. The extradition process to either country will continue to be deliberated in court, with no specific timeline provided after the announcement on Friday.
If Kwon is extradited to the United States, he would likely face eight felony charges filed by prosecutors in March 2023. Kwon was initially arrested in Montenegro in March 2023 for using falsified travel documents along with his colleague, Han Chang-joon, who was Terraform Labs’ former chief financial officer.
Both the United States and South Korea have filed competing extradition requests to have Kwon face fraud charges in their respective countries. However, a final decision has yet to be made.