Extradition Decision for Terraform Labs Co-Founder Overturned by Montenegrin Appeals Court

By: Eliza Bennet

Do Kwon, co-founder of Terraform Labs, has had his extradition decision successfully contested at the Montenegro Court of Appeal. Initial approval had been granted for Kwon's extradition by the Podgorica High Court which had considered the legal criteria compliance of South Korea and the U.S., countries where Kwon could potentially have been extradited to.

Upon expressing his dissatisfaction with the outcome, Kwon appealed the decision, leading to the Appeals Court nullifying the decision on the grounds that it violated provisions of criminal law. Hence, the case will be retried in a lower court. The decision lacked sufficient reasoning behind its pivotal facts and the reasons that were provided were judged as unclear by the appeal attorneys, leading to its cancellation.

According to reports, the issue over where to extradite Kwon remains unclear. South Korea has been Kwon's preferred choice over the U.S. The latter, as well as Montenegro Minister of Justice, however, allegedly favors his extradition to the U.S.

This decision follows Kwon's arrest earlier this year in Montenegro for traveling under fraudulent documents which eventually led to him being convicted for four months. Further legal complications include allegations against Kwon from both the U.S. and South Korea regarding his supposed involvement in the downfall of Terra's UST stablecoin that led to massive industry losses exceeding $40 billion.