Do Kwon, one of the founders of Terraform Labs entangled in accusations of fraud, has been freed from custody in Montenegro.
His release comes as the Supreme Court deliberates over extradition requests from both the United States and South Korea.
According to Bloomberg, Kwon’s release on March 23 followed the Supreme Court’s suspension of a lower court’s decision to extradite him to South Korea.
This legal saga unfolds against the backdrop of the 2022 Terra collapse, which wiped out approximately $60 billion from the cryptocurrency market. Kwon, facing fraud charges in both South Korea and the U.S., was released from prison as his sentence for possessing forged documents concluded.
Darko Vukcevic, a prison official, stated, “We released Do Kwon from prison as his regular prison term for travelling 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.”
The Supreme Court’s Council is now set to determine Kwon’s potential extradition to South Korea, where he faces less severe penalties compared to the U.S.
In the latter, he could face eight felonies related to the dramatic $40-billion collapse of TerraUSD in 2022.
Kwon’s legal representative confirmed his client’s release and mentioned that his passport had been confiscated to prevent him from leaving Montenegro.
Subsequently, Kwon was relocated to a facility for foreigners, with his lawyer indicating plans to seek legal permission for Kwon to remain free pending the extradition decision.
This legal tangle was further complicated by the chief prosecutor’s intervention, highlighting procedural flaws in the extradition process favouring South Korea.
As courts deliberate without a clear timetable, Kwon’s future remains uncertain, with significant charges awaiting him in the U.S. following his arrest in March 2023 for using counterfeit travel documents.
The extradition saga continues, underscoring the intricate international legal challenges surrounding prominent crypto figures like Kwon.