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Montenegro's Supreme Court has overturned a crucial decision regarding the extradition of Do Kwon, co-founder of Terraform Labs. The ruling throws Kwon's fate into uncertainty as he could potentially face extradition to New York, where he faces criminal charges for fraud, or to his native South Korea.

Terraform Labs' Do Kwon Could be Extradited to the US, South Korea

Kwon, often referred to as "the cryptocurrency king," has been embroiled in a legal battle since his arrest in Montenegro last year. Both the United States and South Korea have sought his extradition, but the recent decision has sent the case back to the High Court in Podgorica for further deliberation.

The Supreme Court's decision stemmed from a challenge by Montenegro's top prosecutor, citing procedural errors in the previous verdicts. This legal tug-of-war places the final decision in the hands of Montenegro's justice minister, who will determine where Kwon will be extradited based on the court's assessment.

"In a situation where it is a matter of competing requests from two states for the extradition of the same person, and not a conflict of requests for the extradition of the same person, as found by the lower courts, the court's obligation is to determine, in accordance with its powers, whether the legal conditions for extradition have been met the defendant in relation to each petition individually, after which the competent minister, not the court, decides on the permission and order of priority of extradition," the ruling said.

Kwon's troubles began with his arrest in Montenegro in March 2023 for using falsified travel documents. His alleged involvement in the collapse of Terraform Labs' stablecoin, TerraUSD, which wiped out around $40 billion in market value, has further complicated matters.

US Remains Eager to Extradite Kwon

While Kwon's former colleague, Han Chang-joon, has already been extradited to South Korea, Kwon remains in Montenegro awaiting his fate. Despite his absence, the legal proceedings against Terraform Labs continue, with the US Securities and Exchange Commission pushing forward with a jury trial.

The US Department of Justice remains firm in pursuing Kwon's extradition, emphasizing cooperation with Montenegro's authorities. Meanwhile, Kwon's release from prison in late March has left him in limbo, with his passport withheld and his future uncertain.