Key Takeaways
- Do Kwon loses appeal against U.S. extradition in Montenegro.
- The justice minister will make a final decision on extradition.
- Kwon faces fraud charges linked to Terraform Labs’ $40 billion collapse.
Terraform Labs co-founder Do Kwon has lost his appeal against extradition to the United States.
The Constitutional Court of Montenegro upheld a previous Supreme Court decision, which now leaves the final decision in the hands of the country’s justice minister.
Kwon’s extradition case has been closely watched since his arrest in Montenegro last year following the $40 billion collapse of Terraform Labs.
His arrest triggered a series of legal proceedings that have now brought the decision to an imminent conclusion.
Montenegro’s Constitutional Court Rejects Kwon’s Appeal
Kwon, who has been in Montenegro since March 2023, was arrested after months of evading authorities and following an Interpol notice.
He faces charges of fraud related to the crash of Terraform Labs’ Terra, which led to massive losses for investors and firms within the crypto industry.
The U.S. government requested his extradition shortly after his arrest, but an earlier appeal court ruling in March 2023 blocked the move.
However, in September, Montenegro’s Supreme Court ruled in favor of Kwon’s extradition, stating that the legal grounds were met.
Kwon’s legal team appealed this decision to the Constitutional Court, but on Tuesday, the court rejected the appeal, citing no violations of Kwon’s procedural rights.
“The Constitutional Court concluded that the procedure, which preceded the Constitutional Court, was conducted in a way that ensured the applicant’s right to a fair trial and did not call into question a possible violation of the right to family life,” the court’s verdict read.
The Justice Minister’s Final Decision
With the Constitutional Court’s ruling now final, the case is being forwarded to Montenegro’s Minister of Justice, Bojan Božović, who will decide whether Kwon will face trial in the U.S. or remain in Montenegro.
Given the legal precedent set by the Supreme Court, it is highly likely that Kwon will be extradited to the U.S. to face charges related to the collapse of Terraform Labs.
Both the U.S. and South Korea have been seeking Kwon’s extradition, but reports suggest that the Minister of Justice is inclined to affirm the decision based on legal grounds.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
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