The Appellate Court in Montenegro rejected an earlier approval for extraditing Terraform Labs co-founder Do Kwon. This decision overturns a prior High Court decision. In its decision, the Appeals Court emphasized procedural flaws and ambiguous reasoning.
Kwon was facing extradition for financial crimes relating to the Terra ecosystem's demise. This crash wiped out $40 billion in investor wealth. Both the United States and South Korea requested his extradition. Despite Kwon's agreement to a rushed process, the court found faults. There were shortcomings in how the judge relayed the reasons and evidence for the U.S. request.
Instead of extradition, the matter will be retried in the lower court. It was originally decided that Kwon would serve his four-month sentence for document falsification in Montenegro before being extradited. The final decision rested with Montenegro's Justice Minister. This decision also prolonged Kwon's imprisonment in Montenegro until mid-February.
