South Korean crypto fugitive Do Kwon has been released from prison in Montenegro as the Supreme Court deliberates on extradition requests.
A Bloomberg report indicates that his release occurred on Saturday, March 23. The extradition of the co-founder of Terraform Labs to South Korea was halted by the Supreme Court, which also reversed a lower court’s decision.
Kwon, the founder of The Terra, is presently confronted with fraud charges in both South Korea and the United States. These charges originate from the Terra Luna collapse, which caused an estimated $60 billion in market value to be lost in 2022. According to reports, penitentiary director Darko Vukcevic stated via telephone:
“We released Do Kwon from prison as his regular prison term for traveling with fake papers ended. Since he is a foreign citizen and his documents were withheld, he was taken for an interview to the police directorate for foreigners, and they will deal with him further.”
The Council of the Supreme Court, scheduled to consider a decision that could grant or deny extradition to Kwon’s native South Korea, reportedly released him.
In contrast to the United States, where prosecutors aim to prosecute Kwon for the $40 billion collapse of the TerraUSD algorithmic stablecoin in 2022, penalties in South Korea are relatively less severe.
Goran Rodic, Kwon’s attorney, likewise verified his release. State television reports that Kwon’s passport has been restricted to prevent him from departing the nation.
State television reported later on Saturday that Kwon was transferred to a foreigner sanctuary, as cited by Rodic. Rodic stated that he intends to file an appeal with a court to have Kwon released pending the outcome of his extradition.
The chief prosecutor of the Balkan nation filed a challenge with the Supreme Court, alleging procedural errors in the rulings that favored South Korea’s request. The extradition process to either nation is subject to additional court consideration; a specific timeframe was not disclosed after the announcement on Friday.
Should he be extradited to the United States, the Terraform Labs co-founder would presumably be confronted with eight felony charges that prosecutors officially lodged in March 2023.
Kwon was apprehended in Montenegro in March 2023 on suspicion of conspiring with his colleague, the former chief financial officer of Terraform Labs, Han Chang-joon, to use forged travel documents
In their respective nations, U.S. and South Korean authorities have lodged competing extradition requests for Kwon to have him face fraud charges; however, no final decision has been reached.
