Do Kwon to be released from Montenegro prison as court pauses extradition

Per the High Court decision, Do Kwon will be released from prison in Spuž on Saturday but will not be allowed to leave Montenegro.

As per local reports, the authorities will confiscate Kwon’s valid passport as a security measure. This decision follows the court’s need to address challenges raised by the Supreme State Prosecution Office regarding the process that led to the initial approval of Kwon’s extradition earlier in the month.

The prosecution’s objections relate to the procedure’s expedited nature and question the legal foundation of the court’s decision to extradite Kwon.

The pause in the extradition process allowed Kwon to be extradited to the United States, aligning with Montenegro’s authorities’ preferences. Kwon’s legal representatives have advocated for his return to South Korea, where the consequences for his alleged crimes are less severe compared to those in the United States.

The country’s lead prosecutor has pinpointed technical issues with how the court’s order for extradition was handled. This comes after the court reversed a prior decision to extradite Kwon to the United States for a civil trial related to fraud charges by the U.S. SEC, set to commence on March 25.

Kwon, alongside Terraform Labs, faces litigation by the SEC following the May 2022 collapse of the TerraUSD and Luna cryptocurrencies. The fallout is believed to have erased approximately $40 billion from the cryptocurrency market. He was arrested one year ago in Montenegro for traveling on a fake passport.