Do Kwon’s extradition delayed following Montenegro court decision

abdelaziz Fathi

The extradition of Do Kwon, co-founder of Terraform Labs, has been postponed as the Appellate Court in Montenegro cancelled an earlier ruling. Kwon, arrested earlier this year on charges related to an alleged attempt to travel on a fake passport, awaits the outcome of the court review while in custody in Montenegro.

The Podgorica-based court cited “significant breaches of criminal proceedings” and unclear reasoning behind the previous decision to extradite Do Kwon.

The Terraform Labs co-founder faced potential extradition to either the United States or South Korea. The court’s decision introduces a new layer of complexity to the case, raising questions about the extradition process and the legal intricacies surrounding Do Kwon’s situation.

Kwon has been imprisoned in Montenegro since March, and Montenegro’s Justice Minister Andrej Milovic was expected to make a formal decision on the extradition on December 20.

Kwon’s extradition has been the subject of an international tug-of-war between the U.S. and South Korea, both of which seek to try him for fraud and securities-law violations. The crypto entrepreneur is a South Korean citizen, but a Montenegro court approved his extradition last month, leaving the final decision to Justice Minister Milovic.

The collapse of TerraUSD and Luna tokens had far-reaching consequences, causing losses in the crypto industry. Kwon’s extradition to the U.S. would mean facing criminal charges related to the collapse of these stablecoins and tokens. The decision is pending while Kwon appeals the court ruling in Montenegro.

Do Kwon, known for his role in the Terraform Labs saga, faced legal troubles after using forged passports. Montenegrin authorities, having arrested Kwon and his associate with counterfeit travel documents, have already handed Kwon a four-month prison sentence. Additional discoveries included a set of Belgian passports and electronic devices, which further complicated his case.

The development came shortly after the Higher Court of Podgorica affirmed the guilty verdict issued by a lower court in June, stating that the four-month prison sentence is deemed adequate punishment for the crime committed.

Do Kwon, along with Terra executive Han Chang-Joon, was arrested in Montenegro in March for attempting to leave the country using fake Costa Rican passports. Kwon, who is the founder of Terraform Labs, testified that he believed the passports were legitimate​​​​.

Many enforcement authorities and financial regulators, as well as the Interpol, were already on the hunt for Kwon for his alleged involvement in the collapse of terraUSD (UST) stablecoin and the Terra ecosystem.

As Kwon awaits the final word on his extradition, he is currently serving time at Spuž prison near Podgorica, a facility criticized for poor conditions. The extradition, if approved by the justice minister, will proceed after Kwon serves his sentence for the forged document.

  • Read this next

    Institutional FX

    Intercontinental Exchange reinvents voice trading with ICE Voice

    “For the first time, ICE’s users will have a single, integrated platform for chat and voice that matches both traders’ need for always-on, instantaneous connectivity with other traders, and firms’ desire for easy-to-access and use records that help them meet their record retention requirements.”


    Duco launches EMIR-compliant transaction reporting eligibility validator

    “With Duco’s transaction reporting eligibility validator, customers can run independent checks whenever they want, get results in minutes, and access a clear audit trail. The solution provides insights at a field-by-field level so clients can see specific issues, discuss, and show ESMA they are considering discrepancies at a deep level.”

    Digital Assets

    Bybit’s trading volume near all-time high ahead of Bitcoin halving

    “Now, we’re seeing large inflows and smart money is moving fast. With the Bitcoin halving just around the corner, Bitcoin is proving itself as an institutional asset, a hedge against economic uncertainty, and a vote for financial freedom.”

    Digital Assets

    Morgan Stanley to add spot bitcoin ETFs

    Morgan Stanley is reportedly considering adding spot bitcoin ETF products to its brokerage platform. This move comes after the Securities and Exchange Commission (SEC) approved the investment vehicle in January.

    Digital Assets

    Hong Kong ends license applications for crypto exchanges

    Hong Kong has officially ceased accepting license applications from cryptocurrency exchanges as of February 29, signaling a stringent regulatory shift.


    Volt secures EMI license, expands payment solutions in UK

    Volt has successfully obtained an Electronic Money Institution (EMI) license from the UK’s Financial Conduct Authority (FCA).

    Retail FX

    ASIC bankrupts finfluencer Tyson Scholz over stock tips

    The Australian Securities and Investments Commission (ASIC) has effectively bankrupted Tyson Robert Scholz, the figure behind “Black Wolf Pit.” The action marks a significant crackdown on so-called ‘finfluencers’ and individuals providing unlicensed financial services.

    Digital Assets

    Green Bitcoin Presale Raises $1M as Bitcoin Approaches its ATH

    The eco-friendly crypto project Green Bitcoin has seen its limited-time presale phase cross $1 million in funding. With an innovative gamified staking model and energy-efficient foundation, Green Bitcoin offers token holders a way to stake their tokens and generate yield.


    Introducing QuickNode Streams: Elevating Blockchain Data Management

    Discover QuickNode’s Latest Innovation: Streamlining Blockchain Data Streaming for Enhanced Efficiency and Accessibility. Explore the Future of Blockchain Technology with Streams.