The legal saga surrounding Terraform Labs founder Do Kwon may see yet another twist. PANews, a prominent media outlet in Asia specializing in the blockchain and fintech industries, reported on Monday that the High Court in Montenegro’s capital, Podgorica, has indicated the possibility of another reversal in the extradition decision of Terraform Labs founder Do Kwon to the United States.
According to Digital Asset, Marija Rakovic, a public information officer at the High Court, remarked that the Court of Appeals had previously overturned the High Court’s decision on Do Kwon’s extradition twice. She noted, “The Court of Appeals may once again overturn the High Court’s decision to extradite Do Kwon to the United States if he re-appeals the recent extradition decision.”
Rakovic emphasized that their intention is not to predict the Court of Appeal’s decision but to acknowledge the possibility of such an event.
Do Kwon’s Battle Against US Extradition
This development follows the High Court of Montenegro’s ruling a few days ago, favoring Do Kwon’s extradition to the US over South Korea. This decision was in response to charges against Kwon and Terraform Labs for violating US law by failing to register two digital currencies that collapsed in 2022. The US trial has been delayed to March 25 to accommodate the extradition process.
Do Kwon’s legal battle has captured global attention after his $40 billion digital asset project, including the TerraUSD stablecoin and its sister token Luna, collapsed, resulting in significant investor losses. Estimates by blockchain analytics firm Elliptic suggest that investors in TerraUSD and Luna lost approximately $42 billion.
Despite Kwon’s insistence that neither he nor his company profited from the crash, his prior remarks and a tweet expressing heartbreak over the pain caused have been widely scrutinized.
The situation escalated when South Korea issued an international arrest warrant, followed by an Interpol “red notice.” Kwon’s whereabouts became a subject of speculation after authorities in Singapore were unable to locate him. However, in March 2023, Kwon was arrested in Podgorica, Montenegro, alongside Terraform Labs’ former finance officer, Han Chang-joon, for using forged documents. Both South Korea and the US have sought his extradition.
Following a prison sentence in Montenegro for using fake travel documents, the decision was made to extradite Kwon to the United States rather than South Korea. As the legal proceedings continue, the international crypto community watches closely, awaiting the final resolution in the complex legal saga surrounding Do Kwon and the fallout from Terraform Labs’ collapse.
At press time, Terra Luna Classic (LUNC) traded at $0.000125078.