Montenegro Frees Terra Founder Do Kwon, Extradition Uncertain

Do Kwon, the co-founder of Terraform Labs, has been set free from Montenegrin custody.

As per Bloomberg, Kwon was released on March 23 after completing his sentence for possessing fraudulent travel documents.

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Kwon's lawyer, Goran Rodic, has confirmed his release and is reportedly preparing to challenge any extradition decision, advocating for his freedom during the interim period.

Following the release, Kwon was transferred to a facility for foreign nationals, pending further legal proceedings. His passport has been confiscated, restricting his ability to leave Montenegro.

It has been reported that the Supreme Court Council was behind the decision to temporarily free Kwon as they prepare to evaluate whether to approve or reject his extradition to South Korea, his homeland.

At the heart of the controversy is the dramatic collapse of the Terra digital currency platform in 2022, which erased around $60 billion in market value and sparked fraud allegations in multiple jurisdictions.

In the aftermath of the downfall, Kwon faces charges in the US and South Korea, with both countries seeking his custody. He faces eight charges in the US, including fraud and market manipulation. In South Korea, he is accused of fraud and violating capital markets law, with a looming 40-year prison sentence.

Given the decentralized and borderless nature of digital currencies, the case has highlighted the international legal challenges associated with prosecuting alleged crypto fraud.