A Montenegrin court has overturned a decision that would have led to the extradition of cryptocurrency entrepreneur Do Kwon to the United States.

Kwon, whose real name is Kwon Do-hyung, is the founder of Terraform, a company that experienced a dramatic collapse in 2022. The collapse caused substantial financial losses to investors and sent shockwaves through global cryptocurrency markets.

Kwon and His Legal Battle

Kwon had been evading authorities for several months following the collapse of his company. He fled first from South Korea and then from Singapore before being apprehended in Montenegro in March of the following year. His arrest in Montenegro was due to his use of a counterfeit passport.

The decision to quash the extradition ruling came after several legal proceedings. In a statement, the appeals tribunal of Montenegro acknowledged the appeal presented by Kwon Do-hyung's defense attorneys.

It declared the annulment of the previous ruling made by the Podgorica High Court on February 20 and ordered the case to be reconsidered at the first instance tribunal. The appeals tribunal cited "significant violations of criminal procedure provisions" by the High Court as the primary reason for its decision.

International Interest

According to Bilyonaryo, Kwon's extradition requests come from South Korea and the United States. Both countries seek extradition over his suspected involvement in fraudulent activities associated with his company's collapse. While the High Court had previously allowed Kwon's extradition to the U.S., it had rejected South Korea's request.

A Coindesk report says that while Kwon's recent legal triumph is significant, it does not definitively preclude his extradition. Instead, the court that originally deliberated on the matter will further review the case. Consequently, Kwon's extradition is postponed, if not entirely annulled.

Legal Ramifications

Notably, Montenegro had previously deported Kwon's business partner, identified only by the initials J.C.H., to South Korea in early February.

Given the magnitude of the case and its implications for the future of cryptocurrency regulation and enforcement, the developments surrounding Kwon's extradition have garnered attention not only from legal experts but also from investors and observers within the cryptocurrency community.

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