Do Kwon's Extradition Saga Takes A Twist, As Montenegro Supreme Court Overturns Ruling

The legal battle surrounding Do Kwon, co-founder of Terraform Labs, has taken another turn, with Montenegro’s Supreme Court having thrown a wrench into the extradition process, cancelling a lower court’s decision to send the beleaguered co-founder to South Korea.

What Happened: The crux of the issue lies in a procedural error. Kwon’s lawyers challenged an appellate court’s decision rejecting their appeal against extradition to South Korea.

The Supreme Court agreed with Kwon’s team, stating that the lower court “violated procedure” and failed to consider the competing extradition request from the United States.

The Supreme Court’s ruling sends Kwon’s extradition case back to the High Court in Podgorica. This means the court will have to re-evaluate whether to extradite Kwon to the US or South Korea.

Both countries have criminal charges against him.

While the legal wrangling continues, Kwon remains free to move within Montenegro. He was previously arrested for using forged travel documents, but this detention is separate from the extradition case.

Despite Kwon’s absence, the US Securities and Exchange Commission (SEC) has pressed on with their case against Terraform Labs and Kwon.

Jury selection began in March, with some of Kwon’s past statements being used as evidence. The outcome of this trial remains to be seen.

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Why It Matters: South Korea has already taken action against individuals connected to Terraform Labs.

Kwon’s former CFO, Han Chang-joon, was extradited and faces charges in South Korea. Additionally, South Korean authorities have indicted another co-founder, Hyun-seong Shin.

With the Supreme Court’s decision, Do Kwon’s fate remains uncertain. The High Court will re-examine the extradition requests, leaving it unclear which country, if any, will ultimately take custody of him.

What’s Next: The upcoming Benzinga Future of Digital Assets conference on Nov. 19 offers a prime opportunity to gain valuable insights from industry leaders and legal experts.

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