Do Kwon awaits final extradition call in foreigner camp in Montenegro: report

Former Terraform Labs CEO Do Kwon has been placed in a “reception center” for foreigners by Montenegrin authorities after his prison term ended on March 23, Montenegro’s Vijesti news outlet reported. Kwon was also reportedly interrogated by a local inspector for five hours before he was moved to the camp.

Kwon is expected to stay guarded in the facility until the local court makes a new decision on his extradition, Vijesti reported. Kwon’s local legal representative Goran Rodić deemed this treatment as illegal, saying that he will file a complaint to a local administrative court. The Terra co-founder’s passport was also confiscated last week, the local newspaper said. 

The Montenegrin court wavered on Kwon’s extradition in recent weeks. Montenegro’s Supreme Court delayed Kwon’s South Korea expulsion after local prosecutors objected to the decision last week, claiming that the court overstepped its authority in carrying out an “abbreviated” legal procedure. Kwon was originally slated to be extradited to the U.S., a decision which was revoked on appeal.

The Block has reached out to Rodić, Montenegro’s Ministry of Justice and Supreme Court for additional comments.

Upcoming civil trial

In May 2022, Terraform Labs' Terra and Luna cryptocurrencies collapsed, erasing over $40 billion in market value in a matter of days. Following the debacle, U.S. and South Korean officials pursued Terraform Labs and Do Kwon for fraud and securities law violations. Kwon was captured in Montenegro for using counterfeit travel documents in March 2023.

Meanwhile, the U.S. civil trial on the Securities and Exchange Commission’s fraud charges against Kwon and Terraform Labs is scheduled to take place on March 25.