Montenegro’s Constitutional Court has dismissed an appeal by Korean cryptocurrency mogul Do Kwon regarding his extradition, closing another legal route for the Terraform Labs co-founder.
According to a report by Korea JoongAng Daily, the unanimous decision by the court cited legal inconsistencies in Kwon’s appeal, effectively upholding the earlier ruling that favored his extradition.
Kwon has been at the center of global investigations after the collapse of his crypto empire in 2022, with both the United States and Korean authorities accusing him of fraud and other financial crimes linked to the $40 billion Terra Luna crash.
The Montenegro court’s decision means that Kwon’s legal fate hangs in the balance as the international extradition case potentially sets a precedent for cross-border accountability in crypto.
Related: Montenegro halts Do Kwon’s extradition again ahead of appeal ruling
Ongoing legal battle since Terra-Luna aftermath
Kwon’s legal battle began after his crypto ecosystem, Terra Luna, collapsed in May 2022, erasing approximately $40 billion in market value.
The event sparked investigations into alleged fraud, market manipulation and securities law violations, and Kwon was arrested in Montenegro in March 2023 while attempting to use a forged passport.
Considered one of the most significant events in crypto history, the collapse of the Terra Luna ecosystem shook investor confidence in stablecoins and decentralized finance (DeFi), prompting regulatory crackdowns worldwide.
In April, a US court found Terraform Labs and Kwon liable for fraud in a case initiated by the US Securities and Exchange Commission (SEC), charged with knowingly misleading investors and “reckless” mishandling of customer funds.
Since his arrest, the Montenegro judiciary has been tackling the complexities of Kwon’s dual extradition requests, with the decision expected to weigh heavily on geopolitical dynamics between the US and Korea.
Related: Do Kwon’s extradition case goes back to Montenegrin justice minister
Terraform-SEC lawsuit
In June, Terraform Labs agreed to pay the SEC around $4.47 billion as part of its settlement with the US securities regulator for its collapse, erasing $40 billion in investor assets.
The remedies included disgorgement fines of around $3.6 billion, a $420 million civil penalty, and almost $467 million in pre-judgment interest.
Kwon, per the settlement plan, was found liable for $110 million in disgorgement fines, $80 million in civil penalties, and around $14.3 million in pre-judgment interest fines.
Related: Terraform wallet moves $62M BTC as Do Kwon remains in legal limbo
Montenegrin PM involvement with Terraform Labs
Nearly a week following the Terraform Labs settlement with the SEC, findings from an April court document sparked controversy around the involvement of Montenegrin Prime Minister Milojko Spajic in the crypto firm.
A report from the Montenegrin media outlet Vijesti said that Spajic, who entered office in October 2023, had invested $75,000 to purchase 750,000 Terra (LUNA) tokens from the collapsed firm in April 2018.
Until the SEC disclosed the documents, Spajic claimed that he had never personally invested in the collapsed crypto project — which was proved false after the documents put his name on the list as one of the first investors of Terraform Labs in April 2018.
Magazine: 5 real use cases for useless memecoins
