Do Kwon Sent To Foreigner Facility In Montenegro As He Awaits Extradition Decision

Updated: 25 March 2024

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Montenegrin authorities have sent former Terraform Labs CEO Do Kwon to a “reception center” for foreigners following the end of his prison term on Mar. 23 as he awaits a decision on his extradition.

Kwon will remain at the facility until the local court reaches a decision regarding his extradition, according to a report by Montenegro’s Vijesti news outlet. His passport was confiscated last week, the newspaper added.

Prior to moving camp, the former Terraform Labs CEO was interrogated for five hours by a local inspector, it added

Kwon’s local legal representative, Goran Rodić, said that the treatment of Kwon was illegal and that a complaint will be filed.

US Officials Wait For Do Kwon

A Montenegrin court sentenced Kwon to four months in prison after he was arrested for using a forged passport when trying to board a flight bound for Dubai.

Both South Korean and US authorities have actively pursued his extradition following his arrest, with Kwon expressing a preference for the former.

Država Crna Gora je danas postupila po zamolnici Južne Koreje, i po odluci Ministarstva pravde predala Haan Chang Joon-a nadležnim organima njegove matične države. pic.twitter.com/OvQ1qNyxr1

— Ministarstvo pravde Crne Gore (@PravdaCG) February 5, 2024

The US Attorney’s Office has charged the co-founder with eight criminal charges. A civil case has also been opened against Kwon and Terraform by the US Securities and Exchange Commission (SEC). The date for this trial is set at Mar. 25.

Local prosecutors objected to last week’s decision to extradite Kwon to South Korea. They said the court had overstepped its authority by carrying out an “abbreviated” legal procedure, leading to the decision being delayed.

The Terraform Labs co-founder was initially supposed to be extradited to the US, but that decision was revoked on appeal.

Terraform Labs Files For Chapter 11 Bankruptcy Ahead Of Legal Proceedings

Terraform Labs filed for Chapter 11 bankruptcy protection in Delaware on Jan. 21. It is estimated that the company had between $100 million and $500 million in both assets and liabilities.

The company aims to clear debts owed to vendors and employees without needing additional financing. This bankruptcy filing will also help Terraform Labs navigate ongoing legal proceedings in both the US and Singapore.