Montenegro’s Chief Prosecutor has reportedly raised objections against the extradition of Terraform Labs co-founder Do Kwon to South Korea, suggesting procedural flaws in the court’s decision.
The challenge throws a spotlight on the intricate legal tussle involving Montenegro, South Korea, and the United States over Kwon’s fate following the $40 billion collapse of TerraUSD in 2022. The appellate court in Montenegro recently endorsed the extradition of Kwon to South Korea.
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However, the Supreme State Prosecutor’s office has countered this decision, pointing out procedural missteps. The office emphasizes that the authority to decide on extradition rests with the Justice Minister, not the courts. This development adds a new layer of complexity to the case, possibly opening doors for Kwon’s extradition to the United States, a move some Montenegrin officials favor.
Kwon’s Defense and Possible Outcomes
Kwon’s legal team has been advocating for his extradition to South Korea, where penalties for financial crimes are comparatively lenient. Despite this preference, the possibility of Kwon facing trial in the United States remains, where he could be subjected to consecutive sentences for each count of proven guilt. The US argues its stronger position in seizing Kwon’s global assets and has hinted at a potential agreement with South Korea to prosecute him on American soil first.
The legal entanglement follows the catastrophic failure of Terraform Labs’ digital currencies, Terra and Luna, which erased over $40 billion in market value almost overnight in May 2022. The incident led to international arrest warrants for Kwon, culminating in his arrest in Montenegro in March 2023 for possessing fake travel documents. The case has since evolved into a complex global legal dispute, with both South Korea and the United States eager to hold Kwon accountable for their respective turfs.
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