Terra Co-Founder Do Kwon’s Extradition to South Korea Is in Limbo

Another week, another twist in the extradition saga for Terraform Labs co-founder Do Kwon.

An appellate court in Montenegro has annulled a previous decision for his extradition, citing “significant violations of the provisions of criminal procedure” due to unclear reasoning in the decision, according to a translated version of a press release published on Thursday.

This decision comes just a day after a judge rejected Kwon’s appeal of his extradition to South Korea, saying that it was final and could not again be challenged in court by the Terra founder or the U.S..

This decision effectively returns the case for retrial, marking another chapter in the saga surrounding the aftermath of Terra’s collapse in May 2022, which led to multibillion-dollar losses for investors.

This development comes after Montenegro became a focal point in the jurisdictional tug-of-war between South Korea and the United States, both of which are seeking Kwon’s extradition on charges related to Terraform Labs’ implosion. The case’s complexity is heightened by the fact that Kwon was arrested in Montenegro in March 2023 for trying to use falsified travel documents.

Do Kwon’s extradition process has been fraught with legal challenges and appeals.

Kwon and his business partner, Chang-joon Han, were arrested at an airport in Montenegro last March while attempting to travel on a private jet to Dubai with a forged Costa Rican passport. They both  denied knowing the passports were a fake. The two men were found guilty and sentenced to four months in Montenegrin prison for the offense.

In February, Han was extradited to South Korea to face charges for his involvement in Terraform Labs.

At the time, the Ministry of Justice noted that the former Terraform Labs CFO faces “multiple offenses related to fraud in financial investment services, investments and the capital market.” If he’s found guilty, he could be facing a lifelong jail sentence.