Terra Founder Do Kwon Released in Montenegro – Do Kwon, a fugitive from South Korea involved in crypto, has been freed from prison in Montenegro while the Supreme Court considers extradition requests from the US and South Korea. Kwon’s release was reportedly authorized by the Supreme Court Council, as they deliberate a decision regarding extradition to South Korea.
As per a Bloomberg report, his release occurred on Saturday, March 23. The Supreme Court intervened, pausing the extradition of Terraform Labs co-founder to South Korea by suspending a previous ruling from a lower court. Kwon, the founder of Terra, is currently confronting fraud accusations in both South Korea and the U.S. arising from the Terra Luna collapse, which led to a market value loss of around $60 billion in 2022.
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The prison director Darko Vukcevic reportedly said by phone: “We released Do Kwon from prison as his regular prison term for traveling with fake papers ended. Since he is a foreign citizen and his documents were withheld, he was taken for an interview to the police directorate for foreigners, and they will deal with him further.”
Reportedly, the Council of the Supreme Court made the decision to release Kwon, pending a review that could either approve or deny his extradition to South Korea. Penalties in South Korea are relatively less severe compared to the U.S., where prosecutors are pursuing charges against Kwon for the $40 billion collapse of the TerraUSD algorithmic stablecoin in 2022.
Kwon’s attorney, Goran Rodic, also verified his release. State TV reported that Kwon’s passport has been retained to prevent him from leaving the country. Later on Saturday, as per state TV, Kwon was moved to a shelter for foreigners, with Rodic indicating intentions to appeal to court for Kwon to remain free until an extradition ruling.
The Supreme Court’s action came after a challenge from the chief prosecutor in the Balkan nation, who pointed out procedural errors in the rulings favoring South Korea’s request. Further court deliberations are needed for extradition to either country, with no specified timeline provided following the announcement on Friday. Should he be extradited to the United States, the Terraform Labs co-founder would probably confront eight felony charges filed by prosecutors in March 2023.
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In March 2023, Kwon was apprehended in Montenegro for using forged travel documents alongside his associate, Terraform Labs’ former chief financial officer Han Chang-joon. Competing extradition requests have been submitted by authorities from the U.S. and South Korea to prosecute Kwon for fraud in their nations, although a final decision has yet to be reached.
