Do Kwon’s Fate Uncertain Amid Appeals and US Prosecutors’ Challenge

The High Court in Podgorica, Montenegro, has determined that Do Kwon, co-founder and former CEO of Terraform Labs, should be extradited to South Korea rather than the United States. However, according to various media outlets, this decision is currently open to appeal.

An appeals court overturned the initial ruling to extradite Kwon to the United States on March 5, citing “significant violations of the provisions of criminal procedure.” 

Dramatic Arrest of Do Kwon

Do Kwon has been in Montenegrin prison since his arrest at the Podgorica airport, where he was attempting to travel to Dubai using an allegedly fake Costa Rican passport.

Montenegrin authorities were tipped off about Kwon’s presence by a source the day before his planned flight, as reported by The Wall Street Journal.

Notably, Kwon is reportedly set to face a 40-year prison term in South Korea. He had expressed a preference for extradition to South Korea, stating that he’ll be closer to his family. His legal team questioned the validity of the extradition treaty with the United States. 

US Prosecutors Contest the Decision

In response to the latest Montenegrin high court ruling favoring extradition to South Korea, U.S. prosecutors have contested the decision. The United States Department of Justice (DoJ) expressed its intention to continue seeking Do Kwon’s extradition in accordance with international and bilateral agreements, as well as Montenegrin law. According to a March 7 report by Bloomberg, DoJ states:

“The United States appreciates the cooperation of the Montenegrin authorities in ensuring that all individuals are subject to the rule of law.”

More on Extradition Request

South Korea and the United States filed extradition requests for Kwon in March 2023, leading to an ongoing dispute over jurisdiction. Do Kwon was initially set to be extradited to the United States following a ruling by the High Court in Podgorica.

Interestingly, Terraform Labs’ chief financial officer, Han Chang-joon, who was arrested alongside Kwon at the airport, was already extradited to South Korea in February.

Terraform Labs filed for Chapter 11 bankruptcy in the United States on January 21, following the collapse of the Terra stablecoin and LUNA governance token in May 2022. Do Kwon, who had maintained a social media presence with over a million followers on X, was not seen after the collapse until his arrest in Montenegro.

Do Kwon and Han Chang-joon reportedly resided in Serbia after leaving South Korea, where they had started a consulting business, despite an Interpol “red notice” issued for Kwon.