Do Kwon—the crypto fugitive U.S. prosecutors want to try for $40B collapse of TerraUSD—released from Montenegro prison

The United States and South Korea have sought the extradition of Terraform Labs cofounder Do Kwon. © SAVO PRELEVIC/AFP VIA GETTY IMAGES

South Korean crypto fugitive Do Kwon was released from prison in Montenegro early Saturday as the Supreme Court deliberates on extradition requests from US and South Korea.

“We released Do Kwon from prison as his regular prison term for traveling with fake papers ended,” prison director Darko Vukcevic said by phone. “Since he is a foreign citizen and his documents were withheld, he was taken for an interview to police directorate for foreigners, and they will deal with him further.”

Kwon’s lawyer Goran Rodic also confirmed his release. Kwon’s passport has been held back to prevent him from leaving the country, according to state TV.

Kwon was moved to a shelter for foreigners later on Saturday, state TV reported, citing Rodic, who added that he would appeal to a court, arguing that Kwon should be able to stay at large until an extradition decision is reached.

Montenegro’s Supreme Court on Friday suspended earlier decisions by lower-level judges to extradite the former crypto mogul to South Korea, stalling an effort to hand over the Terraform Labs Pte co-founder to his native country. Penalties are less severe there than in the US, where prosecutors want to try Kwon for the $40 billion collapse of the TerraUSD algorithmic stablecoin in 2022.

The Supreme Court acted a day after the top prosecutor in the Balkan country, citing procedural errors, challenged the rulings that favored South Korea’s request. Extradition to either country is now possible only after further deliberations by the court, which offered no time-frame for a final decision when it announced its move on Friday.

Source: Fortune