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Do Kwon Released From Jail But His Extradition Is Up for Debate Yet Again

It's back to the drawing board (again) for the Montenegro court to decide where to extradite Do Kwon to

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Remember how we told you last week that Do Kwon's extradition has finally been decided upon and that he's heading to South Korea? Well, scrap that... For now.

Do Kwon Will Be Extradited to South Korea But It Could Be a Win For Him
A Montenegro court is sending Do Kwon back home but it might not be the worst thing for the LUNA founder

In the latest chapter of the Luna founder's saga, Montenegro’s Supreme Court has suspended the earlier decision, made by lower-level judges, to extradite Do Kwon to his home country.

The Supreme Court cited procedural errors and challenged rulings that sided with extradition to South Korea.

As we highlighted, extradition to South Korea could be seen as a soft win for Do Kwon as white-collar crime penalties in the country are generally lower than in the US.

The former crypto mogul has now been released from prison in Montenegro and is currently being held at a shelter for foreigners.

"We released Do Kwon from prison as his regular prison term for traveling with fake papers ended,” prison director Darko Vukcevic said.

“Since he is a foreign citizen and his documents were withheld, he was taken for an interview to police directorate for foreigners, and they will deal with him further.”

Do Kwon's lawyer, Goran Radic, confirmed his release. His passport has also been confiscated to prevent him from leaving the country.

The court will once again deliberate over Do Kwon's extradition location but did not announce when it will make its final decision.

Do Kwon was originally arrested in Montenegro in March 2023 for traveling on a fake passport. He then found himself locked in a tug-of-war between the US and South Korea.

On 22 January 2024, Terraform Labs revealed it filed for Chapter 11 bankruptcy in Delaware. The firm said the move was “a strategic step that will enable it to continue its operations and support litigation pending in Singapore and U.S. litigation involving the Securities and Exchange Commission.”

Do Kwon’s Terraform Labs Files For Bankruptcy
LUNA founder Do Kwon could be extradited to the US as soon as March

Terraform Labs also vowed to “meet all financial obligations to employees and vendors during the Chapter 11 case” without requiring additional financing. The firm's assets and liabilities range between $100 million and $500 million.