Kwon appeals Montenegrin court decision on ‘unfounded and illegal’ grounds

The legal situation for Do Kwon, co-founder of Terraform Labs, continues as his lawyers have reportedly filed an appeal against a high court decision regarding his extradition. According to reports from Montenegrin news outlet Vijesti, Kwon’s legal team has appealed against a decision made by the High Court in Podgorica on April 8. This decision would have allowed Montenegro’s Justice Minister, Andrej Milović, to decide whether Kwon should be extradited to the United States or South Korea. Kwon’s lawyers have criticized the high court’s decision, calling it “unfounded and illegal” and an unusual interpretation of the law.

It is currently uncertain whether this appeal will delay Kwon’s extradition process, which has been going on for several months as his legal team files various motions and appeals regarding procedural matters. Kwon was arrested in Montenegro in March 2023 for using falsified travel documents while attempting to leave the country. Despite this, he has been allowed to travel within Montenegro as the courts determine who has the authority to grant extradition to either the United States or South Korea, both of which have pending criminal charges against him.

In the United States, a jury has already found Kwon and Terraform liable for fraud in a civil case brought by the U.S. Securities and Exchange Commission (SEC). Following the verdict, the SEC announced its intention to seek a $5.3 billion judgment, including $100 million in civil penalties specifically for Kwon. The collapse of Terraform in 2022 had a significant impact on the cryptocurrency market, leading to several companies, including FTX, BlockFi, and Celsius, filing for bankruptcy. In January 2024, Terraform itself filed for Chapter 11 protection in the U.S.

As the legal saga surrounding Do Kwon continues, it remains to be seen how the appeals and extradition proceedings will unfold. Kwon’s legal team appears determined to challenge the high court decision and prevent his extradition, while authorities in Montenegro are working to determine the appropriate jurisdiction for his case. Whatever the outcome, the consequences of Terraform’s collapse and Kwon’s legal troubles have had far-reaching effects on the crypto market, further underscoring the importance of regulatory oversight and adherence to legal protocols in the industry.