Terraform Labs Co-Founder Do Kwon Wins Appeal Against Extradition from Montenegro to United States
In Brief
Montenegro’s Court of Appeals revoked the extradition of Do Kwon to the United States following the successful appeal made by the defense attorneys.
Montenegro’s Court of Appeals revoked the extradition of Terraform Labs co-founder Do Kwon to the United States following the successful appeal made by the defense attorneys. The Court of Appeals, once again, cited procedural concerns, highlighting the absence of clear reasoning and factual basis in the Montenegro High Court’s decision regarding the order of extradition requests, serving as the basis for the revocation.
Do Kwon had successfully appealed against extradition twice late last year and in February, contesting the requests from the United States and South Korea. However, Montenegro’s High Court reaffirmed the validity of the extradition requests, leading to Do Kwon filing another appeal.
The development comes after recent reports indicating that Montenegro’s High Court had ruled to extradite Do Kwon to the United States while rejecting South Korea’s request. The case will now return to the first-instance court for reconsideration.
Terraform Labs Challenges and SEC Charges
Do Kwon faced extradition on charges linked to financial crimes in both the United States and South Korea, arising from the collapse of the stablecoin TerraUSD and the cryptocurrency Luna in May 2022. The event led to a significant loss of approximately $40 billion in investor wealth within a short period. Do Kwon‘s initial arrest occurred in Montenegro last year, where he was charged with attempting to leave the country using a fake passport, resulting in a subsequent sentence.
Terraform Labs, the company behind the asset’s development, has filed for Chapter 11 bankruptcy protection in the United States, maintaining its operational continuity while pursuing an appeal against the SEC.
Recently, Terraform Labs contested the SEC’s latest accusations of paying $166 million to the law firm Dentons as special legal counsel fees. The company asserted that the SEC’s true intention was to divert attention ahead of the March 25 trial. The company contends that the SEC’s allegations related to Dentons’ retainer fees involve incorrect legal interpretations and false claims.
Montenegro’s Court of Appeals’ decision to revoke Do Kwon’s extradition marks a pivotal moment in the legal and financial challenges facing the Terraform Labs co-founder, highlighting the complex and evolving nature of the case.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
