• Montenegro Court revokes Do Kwon’s extradition, citing legal flaws in the November decision.
• Appellate Court highlights procedural shortcomings in US extradition request handling.
• Despite the extradition revocation, Kwon’s fate still awaits retrial in Montenegro.

The Appellate Court of Montenegro has cancelled the extradition approval for Do Kwon, founder of Terraform Labs, following an appeal by his defence attorneys. The decision, based on procedural irregularities in the legal process, raises questions about the extradition requests from the United States and South Korea.

This turn of events comes after Kwon’s detention was extended until mid-February, as reported by Bloomberg last week.

Nullification of Do Kwon’s extradition

In nullifying the High Court’s decision to extradite Do Kwon to either South Korea or the USA, the Appellate Court in Montenegro cited a significant violation of the Criminal Procedure Code in the November 17 decision, emphasizing the lack of clear reasons and facts.

While the South Korean extradition request appeared to follow proper procedures, the court highlighted procedural shortcomings in the handling of the US extradition request. Specifically, the investigating judge failed to adequately inform Kwon of the reasons and evidence for the US request, violating legal requirements. Consequently, the case has been remanded to the initial court for retrial.

Legal battles surrounding Terra ecosystem collapse

Do Kwon faces extradition for charges related to financial crimes in the US and South Korea, stemming from the collapse of the Terra ecosystem in May 2022. This collapse led to a staggering $40 billion loss in the market.

Kwon and Terraform Labs’ CFO Han Chang-Joon were apprehended in Montenegro last March after evading authorities in Asia and Europe. The extradition process has been tumultuous, with Kwon’s initial arrest in Montenegro for attempting to use falsified passports, subsequent imprisonment, and legal battles culminating in the recent Appellate Court decision.

This latest development adds another layer of complexity to Kwon’s legal predicament, leaving the global cryptocurrency community awaiting the outcome of the retrial in Montenegro.