Appeals Court in Montenegro Denies U.S. Extradition Request for Do Kwon

An appeals court in Montenegro has denied the U.S.’s request to extradite former Terraform Labs CEO Do Kwon, ruling that he will be sent to South Korea.

The Court of Appeals confirmed the High Court of Podgorica’s decision made in late June, as stated in a release from the appeals court on Thursday.

Kwon’s legal team, along with courts and prosecutors, have debated for months about his extradition location. Kwon and his lawyers expressed a preference for South Korea, which typically imposes maximum sentences of 30 to 40 years for financial crimes. In contrast, the U.S. allows consecutive sentences for each crime a defendant is convicted of.

Kwon was arrested in Montenegro in March 2023 for attempting to board a flight to Dubai with a counterfeit passport and false travel documents from Costa Rica.

Both the U.S. and South Korea are pursuing criminal charges against Kwon. The U.S. Securities and Exchange Commission (SEC) charged Terraform and Kwon in February 2023 regarding the algorithmic stablecoin Terra LUNA, which collapsed in 2022, leading to $40 billion in losses. In May, Terraform and Kwon reached a $4.47 billion settlement with the SEC, which entails a $3.58 billion disgorgement and a $420 million civil penalty. The agreement also prohibits Kwon from serving as an officer or director in any public company.