The legal battle between Terraform Labs and its former CEO Do Kwon in the U.S. and Montenegro continues with new developments.
据黑山上诉法院网站3月5日发布的公告，Terraform Labs联合创始人Do Kwon被引渡至美国的决定被法院撤销。
The development comes amid bankrupt Terraform Labs' recent legal battle with the U.S. Securities and Exchange Commission (SEC).
Why was Kwon's extradition annulled?
The court said the Podgorica High Court's decision to allow Kwon to be extradited to the United States to face criminal prosecution violated the country's rules on criminal procedure.
Another central argument in Kwon's successful appeal was the decision on the priority of extradition. Although Kwon preferred South Korea, the Podgorica High Court supported his extradition to the United States. The decision was based on the priority of the U.S. extradition request over South Korea's request, which was received a day earlier.
However, the Court of Appeal challenged this ruling. It noted that the U.S. request for temporary detention was filed on March 27, 2023, later than South Korea's extradition request. South Korea's request was notified via email on March 24 and March 26, 2023, prior to the United States' formal request on March 28.
It is reported that the second-instance court ruled to send the case back to the first-instance court for retrial.
Kwon's extradition has been delayed for months, with the United States and South Korea both hoping to try him in their respective jurisdictions. Authorities in both countries want Kwon to take responsibility for the collapse of Terra algorithmic stablecoin UST, which cost the crypto industry more than $40 billion.
Terraform Labs slams SEC overreach
The U.S. Securities and Exchange Commission (SEC) recently objected to Terraform Labs' $166 million payment to Dentons, arguing that the company should not have to cooperate with the law firm in bankruptcy proceedings or pay legal fees for its employees.
In a March 4 filing, Terraform Labs responded to the SEC’s objection to a $166 million bail payment to Dentons Law Firm.
The bankrupt cryptocurrency company criticized the SEC’s objection, calling it an example of government overreach. It also claimed that the SEC's move was intended to disrupt pre-trial proceedings. .
According to the company:
“The SEC’s objections, based on concerns about creditors, are actually pretexts for its real motives: to disadvantage and distract opponents on the eve of trial.”
