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Do Kwon May Now be Extradited to U.S. or South Korea as the Supreme Court of Montenegro Contemplates

Details regarding Do Kwon's release and extradition proceedings

Do Kwon, the co-founder of Terraform Labs and a central figure in the cryptocurrency world, has been released from custody in Montenegro. This development comes as the Supreme Court of Montenegro deliberates over extradition requests submitted by both the United States and South Korea. Kwon's release on March 23 was facilitated by the completion of his sentence for possession of falsified travel documents.

Do Kwon finds himself at the heart of a contentious legal battle, facing allegations of fraud in connection with the dramatic collapse of Terra, which wiped out around $60 billion in market value in 2022. The Supreme Court's intervention has temporarily suspended a lower court's ruling that favored extradition to South Korea, where Kwon faces comparatively milder penalties than he would in the U.S. In the latter, he is implicated in the $40-billion downfall of the TerraUSD algorithmic stablecoin.

Following his release, Kwon was taken to a police directorate for foreigners, given his status and the retention of his passport to prevent international travel. His lawyer, Goran Rodic, has indicated plans to appeal for Kwon's freedom until a definitive extradition decision is made. 

The legal battle ahead for Terra's co-founder

The legal horizon for Do Kwon, co-founder of the now-infamous Terraform Labs, remains fraught with uncertainty as he navigates the complexities of extradition law in Montenegro. With the Supreme Court halting his immediate extradition to South Korea, Kwon’s future hinges on a delicate balance of international legal proceedings and the specifics of the fraud charges he faces in both South Korea and the United States.

Complicating matters is Kwon's arrest in March 2023 for using forged travel documents alongside Han Chang-joon, Terraform Labs’ former CFO. This arrest underlines the gravity of Kwon’s legal troubles and the intense scrutiny from law enforcement agencies worldwide. As the courts in Montenegro continue to deliberate, with no fixed timeline for a decision, the case against Kwon encapsulates the volatile intersection of cryptocurrency innovation and regulatory compliance.

The eventual outcome of Kwon's extradition hearings will likely have far-reaching implications, not just for Kwon and Terraform Labs, but for the broader cryptocurrency landscape.