Do Kwon Set To Be Released From Montenegro Prison Awaiting Extradition

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

Kwon is reportedly being released from prison in Montenegro, but he will remain in the Balkan nation as local authorities decide whether to extradite him to the United States or his native South Korea.

Kwon’s Travel Restrictions

Terra creator Do Kwon is leaving the prison walls — at least for now.

A March 22 report from Montenegro daily newspaper Vijesti indicates that Kwon will leave Spuž prison tomorrow after spending nearly a year behind bars. The South Korean crypto mogul will be required to surrender his passport to prevent him from leaving Montenegro.

The decision to release Kwon was made by the Council of the Supreme Court, which is all set to reevaluate a decision that could allow or restrict his deportation to his home country, South Korea.

South Korea and the United States have been seeking Kwon’s extradition on charges related to his role in Terra’s blow-up in May 2022, which led to $40 billion in losses for innocent investors in a matter of days. 

Kwon’s Fate Hangs In The Balance

Kwon and his business partner Chang-joon Han were apprehended and jailed in Montenegro for trying to use fake Costa Rican passports en route to Dubai. While Han was successfully handed over to South Korean authorities in February, Kwon’s extradition process has been rife with legal hurdles and multiple appeals.

A Montenegrin court recently dismissed Kwon’s appeal of his extradition to South Korea, indicating that it was final and neither the Terraform founder nor the U.S. could further challenge it. However, Montenegro’s top prosecutors are pushing back against the decision, preferring he get deported to the U.S. where he could be handed longer sentences should he be found guilty.

If Kwon is extradited to the United States, the Terraform Labs co-founder would face eight criminal fraud charges filed by prosecutors in March 2023. Kwon is also facing civil charges lodged by the U.S. Securities and Exchange Commission. Back in South Korea, Kwon could face an indictment for fraud and violations of capital markets law. 

But at press time, Kwon’s ultimate destination is once again unclear.