The saga of Terraform Labs co-founder Do Kwon continues to unfold, with a court in Montenegro approving his extradition to either South Korea or the United States.
The High Court of Podgorica has determined the legal requirements for Kwon’s extradition, according to an official statement posted on the court’s website on Nov. 24.
As the court approved Kwon’s extradition to either the U.S. or South Korea, the final decision on his extradition will be made by Montenegro’s minister of justice, the announcement notes.
Previously, a court in Montenegro sentenced Kwon to four months in jail after finding him guilty of using a forged passport to try to flee to Dubai via private jet. In June 2023, Kwon was reportedly charged with attempting to leave the country using a fake Costa Rican passport.
If the minister of justice allows the final extradition of the defendant, the extradition will occur after the execution of the criminal sanction announced before in the case of forged documents, the court statement notes.
Kwon was arrested in Montenegro in March 2023 for his role in the $40-billion collapse of the Terra ecosystem in May 2022. As both the U.S. and South Korea subsequently requested Kwon’s extradition, some prosecutors suggested that the Terraform Labs co-founder could be subject to multiple sentences in both countries.
In the U.S., Kwon is facing a fraud-related civil lawsuit from the Securities and Exchange Commission alongside several criminal charges by the Justice Department over the collapse of TerraUSD and LUNA. If Kwon is extradited to South Korea, he could reportedly face a 40-year jail sentence in the country, where he allegedly committed most of his crimes.
Last week, Montenegro’s highest court reportedly denied Kwon’s appeal, forcing him to remain imprisoned. According to online reports, Kwon is currently being held at Spuž prison near the Montenegrin capital of Podgorica, where he is allowed to go outside for one hour daily. European officials reportedly said that the prison is cramped and poorly ventilated.