Montenegro prosecutor challenges Do Kwon’s extradition to South Korea

MONTENEGRO’S top prosecutor is challenging recent court decisions to extradite Terraform Labs co-founder Do Kwon to his native South Korea, as the Balkan country faces duelling demands from Seoul and United States that both want to try him for the US$40 billion collapse of the TerraUSD stable coin in 2022.

Montenegro’s choice where to send the former crypto mogul seemed final earlier this week when its Appellate Court backed decisions that opted for South Korea. However, the office of Supreme State Prosecutor on Thursday (Mar 21) said procedural errors were made, which requires to escalate the case to the nation’s Supreme Court.

Both the Appellate and High Court allegedly mishandled the case of the high-profile detainee by “going beyond their authority to make a decision on extradition, which is the exclusive right of the Justice Minister”, the prosecutor’s said.

The latest twist may open way for Do Kwon’s extradition to the US, as preferred by Montenegro’s government officials. Kwon’s defence team, on the other hand, sought handover to his native country where penalties for white-collar crimes are lower than in the US.

Even if Kwon is extradited to South Korea, the government there could still reach a deal with the US to have him tried in New York first. The US could argue that it has a stronger ability to seize Kwon’s assets around the world and agree to share them with South Korea.

Kwon was arrested in Montenegro in March 2023 for travelling on a fake passport, along with his associate Han Chang-joon, who was handed over to South Korea last month. BLOOMBERG

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL