The Appellate Court of Montenegro has revoked the decision to extradite Terraform Labs co-founder Do Kwon, marking another twist in the prolonged legal saga following the collapse of the Terra ecosystem in May 2022. The court’s decision, announced on February 7, underscores a series of judicial reassessments concerning Kwon’s extradition to face charges in South Korea and the United States.
Legal proceedings and court rulings
The recent court ruling annulled a prior decision by the High Court in Podgorica, dated back to December 29, 2023. This move sends the case back to the first instance for a retrial, highlighting procedural flaws cited by the Appellate Court. Specifically, the court pointed out “significant violations of the provisions of criminal procedure” in the previous extradition decision, emphasizing the unclear and incomprehensible wording that led to the appeal’s acceptance.
This is not the first time Montenegro’s judiciary has halted Kwon’s extradition. In mid-December 2023, the Appellate Court had previously canceled an extradition approval, deferring the final decision to the country’s minister of justice. These judicial reversals reflect Kwon’s complex legal landscape, underscored by the global attention following the Terraform Labs controversy.
The Terraform Labs controversy and global legal challenges
Do Kwon, alongside Terraform Labs, has been at the center of intense regulatory scrutiny following the dramatic collapse of the Terra ecosystem, which resulted in billions of dollars in investor losses. Accusations of orchestrating a massive fraudulent scheme have led to legal challenges in multiple jurisdictions. Kwon’s arrest in Montenegro in March 2023 for using falsified travel documents added to the international legal complexities surrounding his case.
He was released from jail on a $436,000 bail in May while awaiting trial. Later, in June, he was convicted of document forgery by a Montenegro court and sentenced to four months in prison. He appealed the decision but unfortunately lost the case and was ultimately sentenced to four months in November.
The judicial decisions in Montenegro come amid ongoing trials and legal proceedings against other Terraform Labs executives. Notably, the extradition of former CFO Han Chang-joon to South Korea on February 5 represents a continued effort to hold the company’s leadership accountable.
