Montenegro’s Constitutional Court has rejected an appeal by crypto mogul Do Kwon, paving the way for a decision on his extradition to either the U.S. or South Korea.

Do Kwon, founder of Terraform Labs, has lost his appeal in Montenegro’s Constitutional Court, which he had filed to reconsider its decision on his extradition, the Korea JoongAng Daily has learned. The ruling means that Kwon’s case will now be decided by Montenegro’s justice minister, who will determine whether Kwon will be sent to the United States or South Korea for trial.

Kwon is wanted in both countries. In the U.S., he faces charges related to the crash of his failed algorithmic stablecoin TerraUSD (USTC) and token Luna (LUNA), in May 2022. In South Korea, he is also facing legal issues. Kwon was arrested in Montenegro in March 2023, when he was trying to board a private flight to the UAE with fake documents.

Do Kwon was a prominent figure in the crypto world, having created the Terra blockchain network with the promise of revolutionary algorithmic stablecoins. However, everything collapsed in May 2022, just months after the crypto market peaked in late 2021, resulting in $60 billion in losses for both retail and institutional investors.

As the crypto industry struggled with bankruptcies, Kwon fled from authorities. Companies like Three Arrows Capital and FTX went bankrupt due to a major liquidity crisis, while Kwon escaped to Europe.
After an Interpol red notice and global attention, Kwon was caught in Montenegro’s capital, Podgorica.

Kwon’s company, Terraform Labs, agreed to a record $4.47 billion settlement with the U.S. Securities and Exchange Commission after a jury found it guilty of defrauding crypto investors.