Do Kwon’s extradition appeal has been rejected by Montenegro’s Constitutional Court, leaving the final decision on his transfer to South Korea or the U.S. to the country’s justice minister.
Constitutional Court Ruling
Montenegro’s Constitutional Court has rejected an appeal by Do Kwon, co-founder of Terraform Labs, against his extradition. The decision eliminates a critical legal obstacle, pushing the case closer to a resolution. The court’s unanimous verdict follows an October ruling temporarily suspended extradition proceedings until the appeal was addressed.
Kwon had contested a Supreme Court of Montenegro ruling from September, invalidating his extradition to South Korea. That decision left the final extradition determination in the hands of Montenegro’s Minister of Justice.
Extradition to South Korea or the United States?
With the appeal dismissed, the focus now shifts to Justice Minister Bojan Božović, who will decide whether Kwon will be extradited to South Korea or the United States. Reports from South Korea suggest a stronger possibility of extradition to the U.S., reflecting the justice ministry’s stance.
Both nations are pursuing Kwon for charges tied to the collapse of Terraform Labs’ cryptocurrency ecosystem in May 2022. The crash, involving TerraUSD and Luna coins, wiped out approximately $40 billion from the market and marked the onset of the 2022 crypto winter. The collapse also exposed malpractices at other major platforms like FTX and Celsius, prompting global regulatory scrutiny of stablecoins and decentralized finance (DeFi).
Timeline of Legal Proceedings
Do Kwon was arrested in Montenegro in March 2023 while attempting to leave the country using a falsified passport. The High Court in Montenegro initially ruled in February to extradite him to the U.S. to face charges related to the Terra-Luna collapse. However, in March, the decision was reversed in favor of extraditing him to South Korea. Months of legal back-and-forth ensued, delaying the extradition process.
The latest ruling brings the case closer to a conclusion, but the final decision remains pending as Minister Božović weighs the options.
Broader Implications
Kwon’s extradition case is seen as a potential precedent for international cooperation in cryptocurrency-related crimes. The high-profile nature of the case has also sparked political controversies in Montenegro. Former Justice Minister Andrej Milovic accused Prime Minister Milojko Spajić of favoring extradition to South Korea due to alleged financial connections with Kwon.
Meanwhile, Goran Rodić, Kwon’s legal representative in Montenegro, urged Justice Minister Božović to ensure an impartial decision free from political influence, as reported by local news outlet “Pobjeda.”
The timeline for the final extradition decision remains unclear.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.