A Montenegrin court rejected Do Kwon’s extradition appeal.
The Constitutional Court of Montenegro has rejected an appeal against the extradition of Korean cryptocurrency gamer Do Koon, closing another legal avenue for the co-founder of Terraform Labs.
According to a report in Korea's JungAng Daily, the unanimous court decision cited legal inconsistencies in Kwon's appeal, upholding an earlier ruling in favor of extradition.
Kwon in 2010 He has been at the center of international scrutiny since his crypto empire collapsed in 2022, when US and South Korean authorities accused him of fraud and other financial crimes linked to the $40 billion Terra Luna disaster. Both countries have demanded extradition.
The Montenegrin court's decision means that Kwon's legal fate hangs in the balance, as the international extradition case sets a precedent for cross-border liability in crypto.
RELATED: Montenegro halts extradition of Do Kwon again before appeal
An ongoing legal battle since the fall of Terra Luna
Kwon's legal battle began in May 2022 after the crypto ecosystem Terra Luna collapsed, wiping out nearly $40 billion in market capitalization.
The incident sparked investigations into fraud, market manipulation and securities law violations. Kwon was arrested in Montenegro in March 2023 for attempting to use a forged passport.
Considered one of the most significant events in crypto history, the collapse of the Terra Luna ecosystem shook investors' confidence in stablecoins and decentralized finance (DeFi), leading to regulatory measures around the world.
In April, a US court indicted Terraform Labs and Kwon in a lawsuit brought by the US Securities and Exchange Commission (SEC) for misleading investors and recklessly mishandling customer funds.
Since his arrest, the Montenegrin judiciary has been dealing with the complexities of Kwon's extradition requests, and the decision is expected to weigh heavily on geopolitical dynamics between the US and South Korea.
RELATED: Do Koo's extradition case returns to Montenegrin justice minister
Terraform-SEC lawsuit
In June, Terraform Labs agreed to pay $4.47 billion to the SEC as part of the settlement. That includes an estimated $3.6 billion in fines, $420 million in civil penalties and nearly $467 million in prejudgment interest.
Kwon was found liable for $110 million in disgorgement penalties, $80 million in civil penalties and approximately $14.3 million in prejudgment interest under the settlement plan.
RELATED: Terraform Wallet Moves $62M BTC While Do Kwon Remains Legal
Engagement of the Prime Minister of Montenegro with Terraform Labs
About a week after Terraform Labs settled with the SEC, findings from an April court document have sparked controversy over Montenegrin Prime Minister Milojko Spajic's involvement with the crypto company.
According to a report from Montenegrin media outlet Vijesti, Spajic, who took office in October 2023, invested $75,000 in April 2018 to buy 750,000 Terra (LUNA) tokens from the company.
Until the SEC disclosed the documents, Spajic said he had not personally invested in the fracked crypto project. This lie was confirmed when the documents listed his name as one of the original investors of Terraform Labs.
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