PODGORICA – South Korean crypto fugitive Do Kwon was released from prison in Montenegro early on March 23 as the Supreme Court deliberates on extradition requests from the US and South Korea.

“We released Do Kwon from prison as his regular prison term for travelling with fake papers ended,” prison director Darko Vukcevic said by phone.

“Since he is a foreign citizen and his documents are withheld, he was taken for an interview to the police directorate for foreigners, and they will deal with him further.” 

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

Montenegro’s Supreme Court on March 22 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 co-founder to his native country.

Penalties are less severe there than in the US, where prosecutors want to try Kwon for the US$40 billion (S$54 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 favoured 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 March 22. BLOOMBERG