Montenegrin Supreme Court postpones Do Kwon’s extradition

Montenegro’s Supreme Court has decided to provisionally suspend the extradition of Terraform Labs co-founder Do Kwon, following an earlier ruling that suggested his transfer to South Korea.

Extradition gives time to look at the legal issues

According to a report published by Montenegrin news channel Vijesti, the Supreme Court has agreed to prosecutors’ request to postpone the extradition.

Prosecutors filed the request on August 2, after an appeals court upheld an earlier decision granting Kwon extradition. The stay gives the court time to consider legal issues related to protecting legality.

Arrest after forged travel documents

After the collapse of the Terra project in 2022, Kwon’s whereabouts remained unknown for a long time, although he remained active on social media. In March 2023, he was arrested by Montenegrin authorities for using forged travel documents in an attempt to leave the country.

After spending four months in a Montenegrin prison, lawyers and prosecutors began exploring the possibility of extraditing Kwon to the United States or South Korea. In both countries, Kwon faces criminal charges and civil lawsuits for alleged fraud at Terraform.

Notably, Milojko Spajić, the current Prime Minister of Montenegro, was reportedly an early investor in Terraform, investing $75,000 in the company in 2018.

It is still uncertain whether Do Kwon will actually be extradited

Since his release from prison, Kwon has been embroiled in several legal proceedings. The Montenegrin courts have ruled on his extradition several times, but it remains uncertain whether he will remain in Montenegro or be transferred to the US or South Korea.

Han Chang-joon, Terraform’s former chief financial officer and Kwon’s co-detainee, was extradited to South Korea by Montenegrin authorities in February of this year. Two months later, a US court found Terraform and Kwon guilty of fraud in a civil lawsuit filed by the Securities and Exchange Commission (SEC).