Montenegro blocks Do Kwon extradition again following successful appeal
Terraform Labs co-founder Do Kwons extradition to the US was annulled by the Appellate Court of Montenegro, according to a Mar. 5 notice on the Courts website.
This development occurs amid bankrupt Terraform Labs recent legal wrangle with the US SEC.
Why was Kwons extradition annulled?
According to the Court, the High Court of Podgoricas decision to allow Kwon to be extradited to the US for criminal prosecution violated the countrys criminal procedure provisions.
Another argument central to Kwons successful appeal was the determination of extradition priority. Despite Kwons preference for South Korea, the High Court in Podgorica ruled in favor of an extradition to the US. This decision was based on the precedence of the US extradition request, which was received a day earlier than South Koreas request.
However, the Appellate Court challenged this ruling. It pointed out that the US temporary detention request arrived on Mar. 27, 2023, after South Koreas extradition request. South Koreas request had been communicated via emails on Mar. 24, 2023, and Mar. 26, 2023 preceding the formal request on Mar. 28, 2023.
As such, the appeals court determined that the case should be returned to the Court of first instance for retrial.
Kwons extradition has dragged on for several months, with both the US and South Korea seeking trials within their jurisdiction. Authorities in both countries want Kwon to answer for his role in the collapse of Terras algorithmic UST stablecoin, which wiped over $40 billion from the crypto industry.
Terraform Labs slam SECs overreach
The SEC recently opposed Terraform Labs $166 million payment to Dentons, contending that the firm shouldnt engage the law firm or cover legal expenses for employees amidst bankruptcy proceedings.
In a March 4 filing, Terraform Labs responded to the SECs opposition to the $166 million retainer fee paid to law firm Dentons.
The bankrupt crypto firm criticized the SECs objection as an instance of government overreach. It also asserted that the regulators move aimed to disrupt proceedings before trial.
According to the firm:
The SECs objection, framed as a creditor concern, is a pretext for its true motive: to disadvantage and distract an adversary on the eve of trial.
The firm urged the court to dismiss the SECs objections, citing them as containing legal misinterpretations and factual inaccuracies.
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