Montenegrin Court Delays Do Kwon’s Extradition to South Korea

The Supreme Court of Montenegro has made a decision to delay the extradition of Do Kwon, co-founder of Terraform Labs, to his home country of South Korea. This delay comes as the court considers a request from prosecutors regarding the protection of legality for a previous lower court ruling that allowed Kwon’s extradition. The prosecutors argue that an appellate court failed to follow proper procedure when rejecting an appeal from Kwon’s legal team, insisting that only Montenegro’s Supreme Court has the authority to make a legal decision.

Do Kwon, a South Korean citizen, appears to have expressed a preference for extradition to his homeland rather than the United States. He is facing criminal charges in both countries and has been in Montenegrin custody since his arrest in March 2023 for using falsified travel documents. Currently, authorities are grappling with multiple extradition requests, adding complexity to the situation. If Kwon is extradited to the United States, he would likely face eight felony charges related to fraud at Terraform Labs, as filed by US prosecutors in March 2023. In South Korea, he is indicted for fraud and violations of capital markets law.

At this time, it remains uncertain which country – the US or South Korea – will succeed in securing Kwon’s extradition. Han Chang-joon, formerly the CFO of Terraform Labs, was also arrested in Montenegro alongside Kwon, but he was extradited to South Korea in February. In April 2023, South Korean authorities indicted several individuals connected to Terraform Labs, including Hyun-seong Shin, the co-founder of the company.