Do Kwon’s Extradition Decision Reversed by Court of Appeal

Do Kwon, co-founder of Terraform Labs, has had the decision to extradite him to the US reversed by the Court of Appeals of Montenegro.

After the defense attorneys successfully argued their case, the Court of Appeals of Montenegro reversed the decision to extradite Do Kwon, the co-founder of Terraform Labs, to the United States. The Court of Appeals noted procedural issues once more, emphasizing that the Montenegro High Court’s judgment regarding the order of extradition requests lacked a clear rationale and factual foundation, which formed the basis for the revocation.

Do Kwon had successfully contested the petitions of the US and South Korea for extradition twice, in late January and early February of last year. Do Kwon filed a second appeal after Montenegro’s High Court upheld the legitimacy of the extradition demands.

The news follows earlier reports that said the High Court of Montenegro had decided to send Do Kwon to the United States and denied South Korea’s plea for extradition. The first-instance court will now hear the case again for review.

Challenges at Terraform Labs and SEC Charges

Do Kwon was facing extradition due to allegations of financial crimes in the US and Korea that stemmed from the failure of the cryptocurrency Luna and stablecoin TerraUSD in May 2022. In a little amount of time, the incident caused a large loss of investor value totaling about $40 billion. When Do Kwon was first detained in Montenegro last year, he was accused of trying to flee the nation using a forged passport, which led to a subsequent sentence.

The business that developed the asset, Terraform Labs, has applied for Chapter 11 bankruptcy protection in the US, allowing it to continue operating while attempting to have the SEC appealed.

Terraform Labs recently refuted the SEC’s most recent allegations that it paid $166 million in special legal counsel fees to the law firm Dentons. The business claimed that the SEC’s real goal was to deflect attention in front of the trial scheduled for March 25. The corporation argues that misleading claims and improper legal interpretations are present in the SEC’s complaints about Dentons’ retainer fees.

The Court of Appeals in Montenegro’s ruling to revoke Do Kwon’s extradition is a significant development in the legal and financial struggles that the co-founder of Terraform Labs is undergoing, emphasizing how intricate and dynamic the issue is.