The Constitutional Court of Montenegro has rejected Do Kwon's appeal, the South Korean cryptocurrency mogul and co-founder of Terraform Labs, who is behind the catastrophic collapse of the TerraUSD (UST) stablecoin and Luna token. Kwon's appeal against his extradition ruling was unanimously dismissed by the court.

According to a report from local media outlet 'Korea JoongAng Daily', the court's ruling upheld the previous decision favoring Kwon's extradition, with Minister of Justice Bojan Božović set to make the final decision on whether he will stand trial in his home country of South Korea or be sent to the U.S.

Kwon's appeal was dismissed due to legal inconsistencies. The court also rejected his arguments regarding procedural unfairness and violations of his rights.

Kwon has been closely monitored since the collapse of the TerraUSD (UST) stablecoin and its sister coin, Luna, in May 2022, which caused a horrific market loss of $40 billion. Both the U.S. and South Korea have requested his extradition, accusing him of financial crimes, including fraud and market manipulation.

After fleeing South Korea, Kwon traveled through several countries, including Singapore, UAE, and Serbia, before being arrested in Montenegro in March 2023 for attempting to enter with a fake passport.

Thus, the court's latest ruling significantly narrows Kwon's legal options to delay his extradition, and analysts predict that Montenegro may eventually send him to the U.S., where he faces charges related to the Terra-Luna collapse.

Kwon's legal situation is further complicated by a large civil fine imposed by the U.S. Securities and Exchange Commission (SEC). In June 2024, Terraform Labs and Kwon agreed to settle with this securities agency for $4.5 billion, including a significant fine against Kwon personally, as well as a ban on participating in cryptocurrency transactions.

Kwon's fate hangs in the balance

Despite the ruling, Kwon's legal team is expected to continue fighting against his extradition, especially to the U.S., where the charges have a broader scope. Meanwhile, South Korea has urged for a quicker resolution while expressing concerns about potential human rights violations due to delays in the extradition process.

With this ruling, Kwon's fate now lies in the hands of the Minister of Justice of Montenegro, who will decide his next legal steps.

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