- The ruling to extradite former Terraform Labs CEO Do Kwon to the US has been overturned by the Appellate Court of Montenegro.
- Montenegro’s Appellate Court said a high court’s order to extradite Kwon violated criminal procedure in keeping with the country’s laws.
- There have been back and forths in Kwon’s case as both the US and his country South Korea demand his custody.
In a new development, former Terraform Labs CEO Do Kwon, who faces fraud charges with US and South Korean authorities, has once again won an Extradition appeal against the US. The 31-year-old who was arrested in Montenegro last year has been in back and forths with Montenegro’s legal system over his extradition. This latest win over the high court’s ruling would be the second time the erstwhile CEO will be escaping extradition.
Montenegro’s Appellate Court Overrules Kwon’s Extradition Order
The Appellate Court of Montenegro yesterday, revoked the decision of the High Court in Podgorica to allow Kwon’s extradition to the US. According to the court’s official statement, it “annulled” the decision and “returned the case to the first instance to the court for retrial and decision.”
The High Court on Feb. 20, allowed Do Kwon’s extradition to the US to be prosecuted for several criminal offenses. However, the Appellate Court calls it a “shortened procedure” while it seems to hint at a bias, considering that the court had denied the defendant’s extradition to his native South Korea in summary proceedings.
In addition, the Appellate Court’s panel, after assessing the US extradition order, stated that it was “affected by significant violations of the provisions of criminal procedure.” The court also cited that the extradition request from the US dated March 27, 2023, also requested temporary detention “which is to be applied in the specific case” and is very significant in determining the order of requests for extradition.
Do Kwon Will Return to the High Court of Podgorica for Retrial and a Decision
By accepting Kwon’s appeal against US extradition, the Montenegro Appeal Court has determined that his case be returned to first principle and that he be retried and given a decision by the High Court of Podgorica. Back in December 2023, Kwon was also cleared for extradition by the high court before the order was overruled under similar circumstances.
As it stands, South Korean authorities are also interested in Kwon’s custody and may get the upper hand, depending on the outcome of the retrial. Kwon was arrested in Montenegro in March 2023 alongside his Chief Financial Officer Han Chang-Joon, over the possession of fake passports while trying to evade criminal action. While his CFO has been extradited to South Korea, Kwon keeps appealing his extradition, citing that only Montegro’s Justice Minister has the final say in his extradition.
The arrest preceded his indictment by US Federal authorities with eight counts of fraud, including conspiracy to defraud, commodities fraud, and securities fraud. Kwon’s company, Terraform Labs caused the loss of hundreds of billions in investor funds after the crash of the company’s cryptocurrencies TerraUSD and Luna in May 2022. His trial in the US was scheduled for March 25 but will no longer hold due to the annulment of his extradition order.