Terra Co-Founder Do Kwon Freed from Montenegrin Custody Amidst Extradition Battle

Do Kwon, co-founder of Terraform Labs and facing fraud charges after the Terra Luna cryptocurrency collapse, was released from prison in Montenegro on Saturday. The release came as Montenegro's Supreme Court considers extradition requests from the United States and South Korea, where Kwon faces allegations related to the loss of approximately $60 billion in market value.

Do Kwon Released from Montenegrin Custody Amidst Extradition Proceedings

Do Kwon, co-founder of Terraform Labs, has been released from custody in Montenegro following the collapse of the Terra Luna cryptocurrency. Kwon's release comes as Montenegro's Supreme Court weighs extradition requests from the United States and South Korea.

Kwon is accused of fraud in connection with the precipitous loss of approximately $60 billion in market value in 2022. His detention in Montenegro stemmed from charges of traveling with forged documents.

Following his release, Kwon was placed in the custody of the police directorate for foreigners due to his status as a foreign national without valid documentation. The Supreme Court's suspension of a lower court ruling that favored Kwon's extradition to South Korea paved the way for his release.

The extradition proceedings remain ongoing as the Supreme Court Council deliberates on the case. The judiciary's intervention was prompted by procedural errors identified by the chief prosecutor, delaying a definitive resolution on whether Kwon will be extradited to South Korea or the United States.

Kwon faces eight felony charges in the U.S. related to the collapse of the TerraUSD stablecoin.

Goran Rodic, Kwon's attorney, confirmed his client's release. State television reported that Kwon's passport has been confiscated to prevent his departure from Montenegro. Rodic also stated that Kwon has been transferred to a foreigner's shelter.

Rodic intends to petition a court to grant Kwon conditional release pending the outcome of the extradition proceedings.