Do Kwon Extradition Finalised: Terra Founder to Face Justice in South Korea

Court Upholds Extradition Decision

The Montenegro Appellate Court has upheld its decision to extradite Do Kwon, the founder of Terraform Labs, to South Korea.

This ruling, delivered on August 1, concludes a lengthy legal battle marked by numerous appeals and judicial decisions.

The Appellate Court confirmed the previous ruling by the Higher Court in Podgorica, which had approved South Korea's extradition request. The court rejected a concurrent request from the United States, based on Montenegro's Law on International Legal Assistance in Criminal Matters.

Prior Decisions and Legal Basis

The Higher Court had earlier allowed the expedited extradition of Kwon to South Korea due to several criminal charges. However, it denied the U.S. request for expedited extradition despite the U.S. seeking Kwon for significant legal proceedings.

The Appellate Court's decision prioritised South Korea's request, taking into account the order in which the extradition requests were received and other criteria set out in Article 26 of Montenegro's extradition law.

Impact and Background

This ruling is expected to be final, ending months of speculation about Kwon’s potential prosecution in either South Korea or the United States.

Kwon's case has drawn considerable international attention following the collapse of Terraform Labs and its associated cryptocurrencies, TerraUSD and Luna, in May 2022. The incident triggered widespread investigations and legal actions across multiple jurisdictions.

In April 2024, a U.S. court found Terraform Labs and Do Kwon liable for fraud. The verdict included six charges, including knowingly misleading investors and reckless handling of customer funds.