Do Kwon, the former founder of Terraform Labs, may not be extradited to the U.S. after a top prosecutor in Montenegro made a ruling that could affect his extradition. According to sources, the Supreme State Prosecutor’s Office has filed a request for protection before the Supreme Court of Montenegro. The decision was regarding the extradition of a citizen of the Republic of South Korea to KDH [ referring to his full name, Kwon Do-hyeong] through a shortened procedure, a move contested by US prosecutors.
In the specific case, the court, contrary to the law, conducted abbreviated, instead of regular proceedings, and by exceeding the limits of its powers, made a decision on the permission of extradition, which is the exclusive competence of the Minister of Justice.
Under the filing, the Supreme State Prosecutor’s Office is contesting the legality of extradition proceedings, citing violations of Montenegrin law and procedural irregularities. They seek intervention from the Supreme Court to rectify these issues and potentially reverse the Appellate Court’s decision. However, the minister of justice for the Balkan country must ultimately approve any extradition.
Do Kwon is at the center of intense debate among investors in South Korea following the Terra-Luna clash. Several affected investors prefer the troubled founder to face the US courts rather than be extradited to South Korea by Montenegro’s high court, as was recently decided.
Investor Demands Fair Trial in Do Kwon’s Extradition
Through a public forum with more than 2,700 members, the Investor Community’s Statement expressed concerns about Do Kwon getting away with mild punishment if he were brought to trial in South Korea. They maintain that the U.S. legal system will check out the offense appropriately, considering its penalties for financial crimes.
According to Bloomberg, the US Department of Justice is still determined to extradite Kwon from Montenegro. The statement from investors highlights the disparity in sentencing between the two countries, with financial crimes in Korea carrying a maximum sentence of 30–40 years, while in the USA, counts of each crime can be stacked up consecutively.
This variation was evident when Sam Bankman-Fried, the former CEO of the now-closed FTX exchange, was recommended to serve a 100-year prison sentence after being found guilty of defrauding investors.