Do Kwon, Terra founder, arrested in Montenegro for extradition.
Do Kwon, one of the co-founders of Terraform Labs who has been disgraced, has reportedly been taken into extradition custody in Montenegro, according to the regional edition of Radio Free Europe (RFE). In the recent investigation, Kwon is facing questions regarding ties to a local political figure in Montenegro.
Previously, a higher court in Podgorica had confirmed that they would release Kwon and Han on €400,000 bail. However, after the latest decision, Kwon will spend a minimum of six months in Montenegro custody.
Kwon’s legal situation is quite confusing as both South Korean and US prosecutors have charged him with defrauding investors in relation to the $40 billion collapse of the Terra blockchain ecosystem in May 2022.
Earlier this year in March, authorities arrested Kwon over the possession of falsified documents along with his colleague Han Chang-Joon. South Korean officials had been searching for Kwon for the past few months. Since his arrest, South Korea and the US have both been seeking his extradition.
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While Kwon spends the next six months in Montenegro, the court in South Korea will continue working on the extradition request. The authorities have already called this case “the largest financial fraud or financial securities fraud case that has ever happened in South Korea”.
“I heard news today from the media and I will not comment someone else’s actions. This news is unvaluable because nothing is changed, they stay in jail,” said Goran Rodić, Do Kwon’s new lawyer who spoke to DL News.
Do Kwon’s Hearing in Montenegro
The Montenegrin Basic Court has set a hearing date for June 16 to discuss charges against Kwon and former Terraform Labs chief financial officer Han Chong-joon. They are accused of creating fake travel documents.
Kwon is also expected to be questioned by the Special State Prosecutor’s Office regarding his relationship with politician Milojko Spajić. In a letter sent to several officials shortly before the recent elections in Montenegro, Kwon mentioned his contact with Spajić, who leads the Europe Now party.
Spajić denied any connection to Kwon, but news outlets in the country extensively covered their alleged association and possible financial contributions from Kwon.
Kwon had been running away from Interpol for around six months before finding shelter in Serbia. In October, Kwon and Han established a company in Belgrade and bought a luxurious apartment in an exclusive area of the Serbian capital for €2 million.
