The High Court in Podgorica, Montenegro, has ruled that Terraform Labs co-founder and former CEO Do Kwon should be extradited to his native South Korea, rather than the United States, according to various media reports. The decision is still subject to appeal.
An appeals court overturned the High Court’s earlier decision to extradite Kwon to the United States on March 5, citing “significant violations of the provisions of criminal procedure.”
South Korea filed an extradition request in March 2023, which was initially refused in favor of the United States’ request filed two days prior. Kwon has been held in prison in Montenegro since his arrest at the Podgorica airport, where his was attempting to travel to Dubai using an allegedly fake Costa Rican passport.
The Wall Street Journal reported that Montenegrin authorities had been alerted to Kwon’s presence in the country by a tipster the day before his intended flight.
Related: Do Kwon denies forging passport, blames ‘Chinese’ agency: Report
According to WSJ, Kwon had expressed a preference to be extradited to South Korea, saying he would like to be closer to his family. His lawyers called into doubt the validity of the treaty that would allow Kwon’s extradition to the United States. Kwon reportedly faces a 40-year prison term in South Korea.
Lawyers for Kwon had requested that his trail in the United States be delayed until after his extradition to that country. The United States Securities and Exchange Commission (SEC) had joined in that request, asking that his U.S. trial be delayed until at least March 18. The SEC is charging both Terraform Labs and Kwon in its complaint.
Terraform Labs chief financial officer Han Chang-joon, who was arrested with Kwon at the airport, was extradited to South Korea in February.
Terraform Labs filed for Chapter 11 bankruptcy in the United States on Jan. 21. The issuer of the Terra stablecoin and LUNA governance token collapsed in May 2022. Kwon was not seen after the collapse until his arrest in Montenegro, although he maintained a social media presence, having over a million followers on X (then Twitter).
Kwon and Han reportedly lived in Serbia after they departed South Korea and had opened a consulting business, in spite of an Interpol “red notice” issued for Kwon.
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