Do Kwon heading into extradition custody in Montenegro after receiving bail: Report

Do Kwon Arrested and Extradited to South Korea

Do Kwon, a co-founder of Terraform Labs, is reportedly going to be arrested in Montenegro and extradited, as per a report by the local version of Radio Free Europe (RFE). He is also going to be questioned regarding his connections with a local political personality.

A representative of the Montenegrin High Court informed RFE that Kwon was detained for a period of six months while the court deliberates on South Korea’s extradition demand for him. In September, a court in Seoul issued a warrant for Kwon’s arrest. His case has been labelled “the most extensive financial fraud or financial securities fraud case to ever take place in South Korea.”

The U.S. has asked for Kwon to be extradited so that he can stand trial before federal prosecutors and the Securities and Exchange Commission.

The Montenegrin Basic Court has set a date of June 16 to hear the case against Kwon and Han Chong-joon, former Terraform Labs CFO, for allegedly providing false travel documents. The two were apprehended on March 23 at the Podgorica airport in Montenegro as they were attempting to leave for Dubai.

The Prosecutor has reportedly stated that extraditing Do Kwon to South Korea would be the most beneficial for the victims of Terraform Labs.

Kwon and Chong-joon’s Relationship with Milojko Spajić

Kwon is anticipated to be interrogated by the Special State Prosecutor’s Office regarding his relationship with politician Milojko Spajić. In a correspondence he sent to multiple authorities just prior to the current elections in Montenegro, Kwon asserted to have been in touch with the Europe Now party leader Spajić.

Spajić refuted any association with Kwon, yet media outlets in the country extensively reported on their purported relationship and any potential financial contributions from Kwon.

Lawyers representing Kwon and Chong-joon initially had their request for a 400,000-euro ($436,000) bail for each man approved, but the ruling was overturned on appeal before the appeal was dropped.

In May 2022, the Terraform Labs’ Terra ecosystem suffered a catastrophic collapse, resulting in losses potentially reaching up to $40 billion.

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