Do Kwon, co-founder of Terraform Labs, is set to be released from prison in Montenegro but will remain in the country as authorities decide on his extradition to either the United States or South Korea. Kwon has been in prison for nearly a year and will be required to surrender his passport. The decision for his release was made by the Council of the Supreme Court of Montenegro, which is reevaluating his deportation. Both South Korea and the United States are seeking Kwon's extradition on charges related to Terra's collapse in May 2022, which resulted in $40 billion in losses. Kwon and his business partner were arrested for using fake passports, and while his partner was extradited to South Korea, Kwon's extradition process faces legal challenges. A Montenegrin court dismissed Kwon's appeal against extradition to South Korea, but top prosecutors prefer his deportation to the U.S. for potentially longer sentences. Kwon faces eight criminal fraud charges in the U.S. and could be indicted for fraud and violations of capital markets law in South Korea. However, his ultimate destination remains unclear.

LUNA

Another day, another twist in the extradition saga for the disgraced Terraform Labs co-founder Do Kwon.Kwon is reportedly being released from prison in Montenegro, but he will remain in the Balkan nation as local authorities decide whether to extradite him to the United States or his native South Korea.Kwon’s Travel RestrictionsTerra creator Do Kwon is leaving the prison walls — at least for now.A March 22 report from Montenegro daily newspaper Vijesti indicates that Kwon will leave Spuž prison tomorrow after spending nearly a year behind bars. The South Korean crypto mogul will be required to surrender his passport to prevent him from leaving Montenegro.The decision to release Kwon was made by the Council of the Supreme Court, which is all set to reevaluate a decision that could allow or restrict his deportation to his home country, South Korea.South Korea and the United States have been seeking Kwon’s extradition on charges related to his role in Terra’s blow-up in May 2022, which led to $40 billion in losses for innocent investors in a matter of days.Kwon’s Fate Hangs In The BalanceKwon and his business partner Chang-joon Han were apprehended and jailed in Montenegro for trying to use fake Costa Rican passports en route to Dubai. While Han wassuccessfully handed over to South Korean authoritiesin February, Kwon’s extradition process has been rife withlegal hurdlesandmultiple appeals.A Montenegrin court recentlydismissed Kwon’s appealof his extradition to South Korea, indicating that it was final and neither the Terraform founder nor the U.S. could further challenge it. However, Montenegro’s top prosecutors are pushing back against the decision, preferring he get deported to the U.S. where he could be handed longer sentences should he be found guilty.If Kwon is extradited to the United States, the Terraform Labs co-founder would face eight criminal fraud charges filed by prosecutors in March 2023. Kwon is also facing civil chargeslodgedby the U.S. Securities and Exchange Commission. Back in South Korea, Kwon could face an indictment for fraud and violations of capital markets law.But at press time, Kwon’s ultimate destination is once again unclear.

Do Kwon to Be Released from Montenegro Prison Amid Extradition Uncertainty