Montenegro’s Supreme Court has delayed the extradition of Do Kwon, the controversial founder of Terraform Labs, to South Korea. 

The decision comes after the Supreme State Prosecutor’s Office filed a request for a legal review on August 2. The office raised concerns about possible legal violations in previous court rulings that approved Kwon’s extradition.

Kwon, who faces charges in both South Korea and the United States related to an alleged $40 billion cryptocurrency fraud, has been embroiled in a legal tug-of-war between the two nations — and Montenegro. 

Montenegrin newspaper Vijesti helped with this reporting. 

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Do Kwon timeline

The extradition decisions have been going back and forth for quite some time. In March 2023, Do Kwon was arrested in Montenegro for attempting to travel with forged documents. He was given a four-month prison sentence, and multiple extradition requests from the U.S. and South Korea were made during that time.

The courts in Montenegro have issued multiple rulings regarding the extradition of a certain individual. Initially, they ruled in favor of the U.S., but later on, the decision was overturned in favor of South Korea. This change was influenced by South Korea’s earlier request and the serious charges against the individual, which included fraud and bribery.

In March 2024, Montenegrin authorities went as far as approving the extradition of the co-founder of Terraform Labs to South Korea.

Kwon’s legal issues extend beyond extradition battles. In April 2024, a New York jury found him and his company liable for civil fraud, resulting in a $4.5 billion settlement with the SEC. Despite the settlement, U.S. authorities continue to pursue criminal charges​.

The Supreme Court’s recent move to pause the extradition adds another layer of complexity to Kwon’s legal saga. His defense argues that altering the final decision is an abuse of legal procedures, highlighting inconsistencies in the Montenegrin judiciary’s handling of the case.

As the Supreme Court reviews the request, Kwon will remain in detention.

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