Montenegro’s Constitutional Court has dismissed the appeal of Do Kwon, the controversial co-founder of Terraform Labs, against the decision to extradite him. This brings him closer to facing trial abroad after being arrested in Montenegro.
According to Montenegro’s Vijesti newspaper, the court unanimously rejected Kwon’s appeal, citing unresolved legal issues. This paves the way for Montenegro’s justice minister to determine whether Kwon should be extradited to South Korea or the United States.
Both South Korea and the United States are seeking Kwon’s extradition, but the current stance of the justice department suggests that he is more likely to be tried in the United States.
Kwon is accused of playing a crucial role in the catastrophic collapse of Terraform Labs’ TerraUSD and Luna altcoins in May 2022. This collapse resulted in the loss of billions of dollars for investors and triggered a series of investigations into the company’s activities.
Kwon was arrested in Montenegro in March 2023 while attempting to travel with a counterfeit passport. Since then, he has faced mounting legal challenges as authorities from both South Korea and the United States seek his extradition. If extradited to the United States, Kwon is expected to face charges of securities fraud and conspiracy. Meanwhile, South Korean authorities are continuing their own investigation into his involvement in the cryptocurrency crash, which caused widespread financial turmoil.
*This is not investment advice.
