Montenegro’s Constitutional Court has rejected the appeal of controversial Terraform Labs co-founder Do Kwon against a decision to extradite him, bringing him closer to facing trial abroad following his arrest in the European country.
The court unanimously rejected Kwon's appeal, citing unresolved legal issues, according to Montenegro's Vijesti newspaper. The rejection clears the way for Montenegro's justice minister to decide whether Kwon should be extradited to South Korea or the United States.
While both South Korea and the US are seeking Kwon's extradition, the justice department's current stance suggests he is more likely to face trial in the US.
Kwon is accused of playing a key role in the devastating collapse of Terraform Labs’ TerraUSD and Luna altcoins in May 2022. The collapse wiped out billions of dollars in investor funds and set off a wave of investigations into the firm’s activities.
Kwon was arrested in Montenegro in March 2023 while trying to travel with a fake passport. He has since faced increasing legal challenges as authorities from both his home country of South Korea and the United States fight his extradition. Kwon is likely to face charges including securities fraud and conspiracy if extradited to the U.S. Meanwhile, South Korean authorities are continuing their own investigation into his role in the cryptocurrency crash that caused widespread financial turmoil.
*This is not investment advice.