Montenegro’s Constitutional Court has rejected the appeal of Do Kwon, the controversial co-founder of Terraform Labs, against a decision to extradite him. This brings him closer to facing trial abroad after his arrest in the European country.
According to Montenegro’s Vijesti newspaper, the court unanimously dismissed Kwon’s appeal, citing unresolved legal issues. The rejection paves the way for Montenegro’s justice minister to determine whether Kwon should be extradited to South Korea or the United States.
Although both South Korea and the US are seeking Kwon’s extradition, the current stance of the justice department suggests that he is more likely to be tried in the US.
Kwon is accused of playing a crucial role in the catastrophic collapse of Terraform Labs’ TerraUSD and Luna altcoins in May 2022. The collapse resulted in the loss of billions of dollars in investor funds and triggered a series of investigations into the company’s activities.
Kwon was arrested in Montenegro in March 2023 while attempting to travel with a counterfeit passport. Since then, he has faced mounting legal challenges as authorities from both his home country of South Korea and the United States fight for his extradition. If Kwon is extradited to the US, he is likely to face charges of securities fraud and conspiracy. Meanwhile, South Korean authorities are continuing their own investigation into his involvement in the cryptocurrency crash, which caused widespread financial turmoil.
*This is not investment advice.