In a significant legal development, the Appellate Court in Montenegro has ruled that Do Kwon, co-founder of Terraform Labs, is to be extradited to South Korea. This decision, made on August 1, follows an earlier determination in April by the High Court of Podgorica, which had denied the United States' extradition request for Kwon, referred to widely as a crypto fugitive due to his involvement in a massive financial scandal.

The Montenegrin court’s recent ruling confirms Kwon's return to his homeland, although a specific extradition date has yet to be announced. The series of legal controversies surrounding Kwon has been ongoing, with various rulings and a complex legal history.

In March, the High Court in Montenegro affirmed a request to extradite him back to South Korea, but that decision was temporarily obstructed when the matter was escalated to a higher court. The court's statement clarifying that "there was no appeal against the aforementioned decision" has added fuel to Kwon’s ongoing legal saga.

Since its inception in 2018, Terraform Labs has dramatically impacted the cryptocurrency market, erasing over $40 billion in market value due to the catastrophic failure of its digital currencies, TerraUSD and Luna, in May 2022. In the wake of this collapse, Kwon’s company sought Chapter 11 bankruptcy protection in Delaware at the start of this year.

Kwon faces multiple charges from both U.S. and South Korean authorities, including allegations of fraud linked to the demise of Terraform's digital assets. He was arrested in Montenegro in March 2023 while attempting to fly to Dubai using forged travel documents.

The U.S. Securities and Exchange Commission (SEC) has also taken action against Kwon, accusing him and Terraform of defrauding American investors. Following the legal turmoil, a civil securities fraud lawsuit culminated in a settlement requiring Terraform Labs to pay nearly

4.5 billion, of which Kwon personally contributed approximately 204 million

The company has also initiated a strategic sale process as part of its ongoing bankruptcy proceedings.

The repercussions of Kwon's actions continue to resonate throughout the cryptocurrency landscape, impacting investors and leading to discussions around regulatory reforms.

As Do Kwon prepares to face justice back in South Korea, the outcome of his case may set important precedents in the world of digital finance and governance.