Montenegro’s Court Upholds Extradition Ruling (Report)

The Constitutional Court of Montenegro has dismissed an appeal filed by Do Kwon, the South Korean crypto mogul and co-founder of Terraform Labs, who is at the center of the catastrophic collapse of the TerraUSD (UST) stablecoin and its token, Luna.

Kwon’s appeal, which challenged his extradition ruling, was unanimously rejected by the court.

Dwindling Legal Options for Kwon

According to the report by local media outlet ‘Korea JoongAng Daily,’ the court’s decision upheld the earlier ruling favoring Kwon’s extradition, with the Justice Minister, Bojan Božović, set to make the final call on whether he will face trial in his home country of South Korea or be sent to the United States.

Kwon’s appeal was rejected on grounds of legal inconsistencies. The court also dismissed his arguments of procedural unfairness and violations of his rights.

Kwon has been under intense scrutiny since the May 2022 collapse of the TerraUSD (UST) stablecoin and its sister token, Luna, which caused a devastating $40 billion market loss. Both the US and South Korea have requested his extradition, accusing him of financial crimes, including fraud and market manipulation.

After fleeing South Korea, Kwon traveled through several countries, including Singapore, the UAE, and Serbia, before being arrested in Montenegro in March 2023 for attempting to travel with a forged passport.

As such, the latest ruling by the court significantly narrows Kwon’s legal options for delaying extradition, and analysts predict that Montenegro may ultimately send him to the US, where he faces charges related to the Terra-Luna collapse.

Kwon’s legal situation is further complicated by a massive civil penalty imposed by the US Securities and Exchange Commission (SEC). In June 2024, Terraform Labs and Kwon agreed to a $4.5 billion settlement with the securities agency, including hefty fines for Kwon personally, as well as a ban on engaging in crypto transactions.

Kwon’s Fate Hangs in Limbo

Despite the ruling, Kwon’s legal team is expected to continue fighting against his extradition, particularly to the US, where the charges are more extensive. Meanwhile, South Korea has urged for a quicker resolution while expressing concerns over potential human rights violations due to delays in the extradition process.

With the ruling, Kwon’s fate now lies in the hands of Montenegro’s Justice Minister, who will determine his next legal steps.