Do Kwon Extradition Approval Revoked

The Appellate Court in Montenegro has made a significant decision, overturning the extradition approval for Do Kwon, co-founder of Terraform Labs.

This reversal follows an appeal filed by Kwon's defense attorneys, challenging the High Court's decision made on 17 November.

The Appeals Court identified procedural issues in the legal process, specifically highlighting a lack of clear reasons and facts in the High Court's decision.

This led to concerns about the handling of the U.S. extradition request, with the court stating that the investigating judge failed to adequately inform Do Kwon of the reasons and evidence, violating legal requirements.

Do Kwon Case Sent for Retrial

As a result of these procedural flaws, the decision has been annulled, and the case has been returned to the initial court for a retrial.

Despite the correct processing of the South Korean request, the court found shortcomings in how the investigating judge managed the U.S. extradition request, failing to meet legal standards.

The High Court in Podgorica had previously agreed to Do Kwon's extradition to one of the countries, contingent on him serving a 4-month prison sentence in Montenegro for document forgery.

The final decision on which country would take precedence was to be made by the Minister of Justice of Montenegro.

Financial Crimes in the U.S. and South Korea

Do Kwon faced extradition for charges related to financial crimes in the U.S. and South Korea, linked to the multi-billion dollar collapse of the Terra ecosystem in May 2022.

Reports indicate an extension of Do Kwon's detention until 15 February at the request of the U.S. and South Korea during his extradition appeal.

This extension followed the scheduled end of his detention on Friday, 15 December.

Uncertain Destination for Extradition

Previous reports detailed discussions within Montenegro's Justice Minister concerning plans for Kwon's extradition to the U.S.

The closed-door nature of these discussions raises questions about the final destination of Kwon's legal journey.

Kwon's legal journey began with his arrest in Montenegro in March for using a fake passport.

Despite being released on bail pending trial, he faced a four-month prison sentence in June for document forgery.

An unsuccessful appeal resulted in a confirmed four-month sentence in November.

Do Kwon gained international attention in September 2022 when Interpol issued a red notice, stemming from the May 2022 collapse of the TerraUSD and Luna tokens.

This event led to the wiping out of approximately $40 billion of investor wealth in a few days.