Do Kwon’s Appeal Rejected: Montenegro Court Clears Path for Extradition Decision

• Montenegro’s court rejected Do Kwon’s appeal, affirming the extradition ruling and narrowing his legal options.
• Justice Minister Božović will decide whether Kwon faces prosecution in South Korea or the United States.
• Kwon’s legal battles stem from the TerraUSD and Luna collapse, causing a $40 billion market loss.

The Constitutional Court of Montenegro has dismissed an appeal from Do Kwon, co-founder of Terraform Labs.

The ruling upholds an earlier decision favoring extradition and moves the process closer to resolution. Kwon has been embroiled in legal battles since the collapse of TerraUSD (UST) and Luna in May 2022, which triggered a $40 billion market loss.

Local reports confirmed that the court’s unanimous decision leaves Justice Minister Bojan Božović to determine Kwon’s extradition.

Authorities in South Korea and the United States are vying for jurisdiction to prosecute him on charges of financial crimes, including fraud and market manipulation.

Kwon’s legal team challenged the process, citing procedural violations and alleged rights infringements, but these claims were dismissed due to lack of merit.

Kwon’s legal troubles stem from the TerraUSD and Luna collapse, which devastated the crypto market.

Following the incident, Kwon fled South Korea, traveling through Singapore, the UAE, and Serbia before his arrest in Montenegro in March 2023. He was detained while attempting to leave the country with forged travel documents.

The global impact of TerraUSD’s collapse heightened scrutiny of Kwon’s actions. Both the United States and South Korea accuse him of financial crimes, increasing the stakes of the extradition battle.

In June 2024, Terraform Labs and Kwon settled with the SEC, agreeing to a $4.47 billion penalty. The agreement included a ban preventing Kwon from participating in cryptocurrency activities.

This financial settlement adds to his legal burdens, with U.S. authorities pursuing charges tied to the Terra-Luna debacle.

Despite the latest ruling, Kwon’s legal team is expected to resist extradition, especially to the U.S., where he faces extensive charges. Meanwhile, South Korea is advocating for a swift extradition process, emphasizing concerns about procedural delays.

The final decision now rests with Montenegro’s Justice Minister, who holds authority over Kwon’s next legal steps. The ruling marks a critical juncture in the case, narrowing Kwon’s remaining legal options.