CoinDesk reported that Do Kwon, the founder of Terraform Labs, has received a potential reprieve from extradition to the U.S., thanks to a recent development in a Montenegro court. The Appellate Court of Montenegro overturned a prior decision from a Podgorica court, directing the case back for retrial and further decision-making, according to the court's announcement.

Kwon, facing fraud charges linked to the collapse of the Terra ecosystem, had previously appealed the U.S. extradition request. The downfall of Terra in mid-2022 resulted in substantial losses for investors. Following Terra's failure, Kwon sought refuge in Montenegro but was subsequently arrested on charges of possessing falsified official documents. Currently serving a four-month prison sentence, he awaits extradition approval while the country determines the destination.

The U.S. and South Korean governments have both sought Kwon's extradition due to his alleged role in Terra's implosion. The recent legal victory does not necessarily guarantee immunity from extradition for Kwon; instead, the case is slated for retrial before the court that initially handled the matter. Consequently, while this development introduces a delay, if not a cancellation, the uncertainty regarding Kwon's extradition persists. Kwon's lawyer, Goran Rodic, previously asserted that local courts were facing political pressure to expedite the extradition process.

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