Do Kwon, the founder of Terra, was released in Montenegro

South Korean crypto fugitive Do Kwon has been released from a Montenegrin prison as the Supreme Court deliberates on extradition requests from the United States and South Korea.

According to Bloomberg, he was released from prison on Saturday, March 23. The Supreme Court blocked a lower court's decision to halt the extradition of the Terraform Labs co-founder to South Korea.

Terra founder Kwon is currently facing fraud charges in South Korea and the US stemming from the collapse of Terra Luna, which saw its market value fall to $60 billion by 2022. Prison director Darko Vukčević is reported to have said on the phone.

“We released Do Kwon from prison because his regular prison term had expired for traveling on false papers. Since he is a foreigner and his documents were denied, he was taken to the Police Directorate of Foreigners for an interview and will be contacted further.

The decision to release Kwon came from a panel of the Supreme Court, which is set to consider a decision on whether to grant or deny extradition to his native South Korea. In South Korea, penalties are relatively milder than in the U.S. as prosecutors seek to prosecute Kwon over the $40 billion collapse of the TerraUSD algorithmic stablecoin in 2022.

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Cowon's attorney, Goran Rodic, confirmed the release. According to state TV, Kwon's passport has been seized to prevent him from leaving the country. Kwon was transferred to a foreigner's shelter on Saturday, Rodich said, adding that he plans to appeal to the courts pending a decision on Kwon's extradition.

The Supreme Court's action followed a challenge by the Balkan nation's attorney general citing procedural errors in rulings upholding South Korea's request. Extradition to both countries awaits further court discussions, with no specific timetable given after Friday's announcement.

If extradited to the United States, the Terraform Labs founder could face eight felony charges filed by prosecutors in March 2023. Kwon was arrested in March 2023 in Montenegro along with his colleague, the former chief financial officer of Terraform Labs, for using fraudulent travel documents. Han Chang-jun.

U.S. and South Korean officials have filed competing requests to indict Kwon on fraud charges in their respective countries, but no final decision has been made.

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