Terraform Labs Co-founder Do Kwon Appeals Extradition Decision Amid Claims of Political Pressure

Do Kwon, co-founder of Terraform Labs, has once again appealed the Montenegro High Court’s decision to uphold extradition requests from the U.S. and South Korea. His legal team argues that the recent decision by the Montenegro High Court violates legal provisions, the European Convention on Extradition, and the bilateral treaty with the U.S. on extradition.

Rodic said, “We appealed again, and now we are waiting for a new decision of the Court of Appeal.”

Concerns about potential political pressure influencing the court’s decision have been raised by Kwon’s lawyer, Goran Rodic.

He continued, “Apparently, there is also political pressure on the court, all to the detriment of Do Kwon.”

Kwon and an associate were arrested in Montenegro last year on charges of possessing falsified official documents, resulting in a four-month prison sentence. As he serves his sentence in Montenegro, the country is responsible for approving his extradition and determining the destination for the transfer. The extradition case has gained global attention due to Kwon facing criminal charges in both the United States and South Korea.

In the U.S., Kwon’s counsel has requested courts delay the securities fraud trial, which seeks his in-person attendance. Judge Jed Rakoff of the U.S. District Court for the Southern District of New York is expected to decide on the matter soon. If the request is rejected, the trial is set to commence on January 29, 2024, without his presence. In such a scenario, the judge is likely to instruct the jury that Kwon’s absence should not unduly prejudice him, as requested by his counsel.

Kwon’s extradition process, marked by months of delays, recently saw a successful appeal against a Montenegro High Court decision, leading to a retrial. Both Kwon and the SEC have filed for summary judgment in the U.S., seeking a judge’s decision without a trial, citing insufficient substantiation of the opposing party’s case. The complex international legal battle continues, involving multiple jurisdictions and interests.

Do Kwon Appeals Extradition Decision in Montenegro Amid Fraud Charges

Do Kwon has filed an appeal against the Montenegro High Court’s decision to uphold extradition requests from the U.S. and South Korea. This move follows the High Court’s initial reversal of its decision in November, which deemed the extradition requests legally sound. Kwon faces criminal charges in both South Korea and the U.S., including fraud, related to the collapse of Terraform Labs in May 2022.

The legal battles surrounding Kwon escalated in February 2023 when the SEC filed fraud charges, accusing him of involvement in a multibillion-dollar crypto securities fraud linked to the collapse of Terraform Labs’ stablecoin TerraUSD (USTC) and its associated Terra (LUNA) token. The collapse of Terraform Labs led to significant legal challenges for Kwon, with both U.S. and South Korean authorities seeking his extradition.

In December 2023, the Appellate Court of Montenegro annulled the High Court’s decision approving Kwon’s extradition. However, the legal proceedings continue, and his legal team has requested an adjournment of the trial until mid-March. The extradition case involves complex international legal dynamics, with the possibility of Kwon facing multiple sentences in different jurisdictions. Kwon was initially arrested in Montenegro in March 2023 for attempting to use falsified travel documents to leave the country.