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

According to a report from Radio Free Europe (RFE), Do Kwon, the co-founder of Terraform Labs, is set to be held in custody in Montenegro for a period of six months while the Montenegrin court reviews a request for his extradition from South Korea. Additionally, Kwon is facing inquiries regarding his connections to a local political figure.

As stated by a spokesperson for the High Court of Montenegro, the court has ordered Kwon’s custody for six months to deliberate on South Korea’s extradition request. In September, a Seoul court issued an arrest warrant for Kwon, with his case being described as “the largest financial fraud or financial securities fraud case that has ever happened in South Korea.”

Furthermore, the United States has also requested Kwon’s extradition to face charges brought by federal prosecutors and the U.S. Securities and Exchange Commission.

The Montenegrin Basic Court has scheduled a hearing on June 16 to address charges against Kwon and former Terraform Labs chief financial officer Han Chong-joon, specifically related to falsified travel documents. Both individuals were apprehended on March 23 at the Podgorica airport in Montenegro while attempting to travel to Dubai.

In addition, Kwon is expected to be interrogated by the Special State Prosecutor’s Office regarding his association with politician Milojko Spajić. Kwon claimed to have had contact with Spajić, the leader of the Europe Now party, in a letter he sent to several officials shortly before the recent elections in Montenegro.

Although Spajić denied any connection with Kwon, news outlets in the country extensively covered their alleged affiliation and potential financial contributions from Kwon.

Initially, lawyers representing Kwon and Chong-Joon obtained approval for their proposed bail amount of 400,000 euros ($436,000) for each individual. However, this decision was later overturned on appeal, and the appeal itself was subsequently dismissed.

It is worth noting that Terraform Labs’ Terra ecosystem suffered a collapse in May 2022, resulting in estimated losses of up to $40 billion.

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