Montenegro's top court has made a significant decision regarding the extradition case of a South Korean mogul known as 'the cryptocurrency king.' The court announced on Friday that it has overturned a previous ruling to hand over Do Kwon, the founder of Terraform Labs, to South Korea.
This development adds another layer of complexity to the months-long legal battle surrounding Do Kwon's arrest in Montenegro last year. Both the United States and South Korea had requested his extradition, with initial court decisions favoring the U.S. However, the Supreme Court of Montenegro has now directed a lower court to review the case once again, placing the final decision in the hands of Montenegro's justice minister.
Do Kwon faces charges of fraud in the U.S., where federal prosecutors in New York have accused him of being involved in a $40 billion crash of Terraform Labs' cryptocurrency. The collapse of the digital currency had severe repercussions for retail investors worldwide.
Kwon and another individual from South Korea were apprehended in Montenegro while attempting to travel to Dubai using counterfeit Costa Rican passports. Kwon has already served a prison sentence in Montenegro for his involvement in the passport fraud.
The legal troubles extend beyond Do Kwon, as five other individuals connected to Terraform Labs are also under scrutiny for alleged fraud and financial crimes related to the collapse of their digital currencies in May 2022. TerraUSD, a stablecoin designed to maintain a fixed value by being pegged to stable assets like the dollar, experienced a significant drop in value, causing approximately $40 billion in losses for holders of TerraUSD and its companion currency, Luna.
