The Constitutional Court of Montenegro has rejected an appeal by Do Kwon, the co-founder of Terraform Labs, against his extradition. The unanimous decision pointed out legal flaws in Kwon's appeal and upheld a previous ruling in support of his extradition. The case now moves to Montenegro's justice minister, who will decide whether Kwon will be extradited to South Korea or the United States, with the latter being more likely according to Korean reports. Both countries have charges against Kwon related to the collapse of Terraform Labs' crypto ecosystem, which resulted in a market crash of around $40 billion in May 2022. This crash had significant implications and led to increased regulatory scrutiny of stablecoins and DeFi globally. Kwon was arrested in Montenegro in March 2023 with a falsified passport, making his extradition case a potential precedent for cross-border enforcement in cryptocurrency-related crimes. Terraform Labs recently reached a settlement with the SEC, agreeing to pay $4.47 billion, and Kwon himself was ordered to pay over $200 million in penalties. Reports have also emerged about Kwon's alleged political connections in Montenegro, raising questions about potential influence over the extradition process. Overall, the court's decision brings Kwon closer to facing justice and highlights the challenges of international legal coordination in the crypto space.



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