Montenegro Rejects Do Kwon’s Appeal Against Extradition to US

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Montenegro’s Constitutional Court has denied Do Kwon’s appeal to stop his extradition to the US.

The decision, made on December 24, 2024, confirms the Justice Minister Bojan Božović has the authority to make extradition decisions. This brings Kwon one step closer to facing multiple charges in the US for the collapse of TerraUSD (UST) and Luna.

Kwon had appealed the previous Supreme Court decision that invalidated his transfer to South Korea so he could stay in the country and avoid extradition. His lawyers argued the process was a violation of his right to a fair trial and family life. But the Constitutional Court found no merit in those arguments and upheld the decision to delegate the extradition process to the Justice Minister.

Extradition to the US or South Korea?

While the court decision has limited Kwon’s options, the question of where he will be sent remains. Local reports suggest Montenegro may prioritize extradition to the US as the country has more interest in the case. This is big for Kwon who is accused of causing over $34 billion in losses from the Terra-Luna collapse in 2022. He has been under investigation for over a year after fleeing South Korea, traveling through Singapore, UAE and Serbia before being arrested in Montenegro for using a fake passport.

Kwon’s lawyers will likely continue to try to block his extradition to the US where he faces multiple charges including securities fraud. South Korean authorities are worried and are urging Montenegro to speed up the process to avoid potential human rights violations that may arise from prolonged proceedings.

Terraform Labs’ Ongoing Legal and Financial Troubles

In addition to the extradition battle, Kwon is also facing financial woes. In June 2024, US District Court Judge Jed Rakoff approved a $4.5 billion settlement between Terraform Labs and the US Securities and Exchange Commission (SEC). The settlement requires the company and Kwon to pay civil penalties and disgorgement related to the illegal sale of securities, specifically the Terra ecosystem’s tokens.

Despite the settlement, Terraform Labs may not be able to pay up as the company, now under Chapter 11 bankruptcy, has only $150 million in assets. This is another blow for Kwon and Terraform Labs.

Key Takeaways

  • Montenegro’s Constitutional Court rejected Do Kwon’s appeal to block his extradition.

  • The court’s decision clears the way for Kwon’s potential extradition to the US, where he faces multiple charges.

  • Terraform Labs, under bankruptcy protection, is struggling to meet the $4.5 billion settlement imposed by the SEC.

This latest ruling significantly impacts Kwon’s legal options and sets the stage for further developments in the case, with Kwon’s potential extradition to the United States a matter of growing concern for his defense team.

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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