Do Kwon, a cofounder of the failed algorithmic stablecoin TerraUSD, could be detained for up to six months in Montenegro as authorities decide whether to extradite him, according to Radio Free Europe.
A spokesperson for the High Court of Montenegro confirmed to the outlet that Kwon will remain in detention while the country weighs a request from South Korea. Kwon's home country issued a warrant for his arrest in September. The U.S. has also requested his extradition.
The disgraced crypto founder had been on the run from authorities for months before he was arrested in March trying to leave Montenegro's capital, Podgorica, for Dubai using a fake Costa Rican passport. Authorities also recovered what they described as forged passports from Belgium and South Korea for both Kwon and Han Chong-joon, the former chief financial officer of Terraform Labs, who also was arrested. Kwon was charged with attempting to use forged travel documents, and pleaded not guilty.
Although a judge originally granted Kwon and his associate a six-figure bail, the decision was later overturned after the prosecution appealed.
Earlier this month, local news outlets reported that Kwon allegedly contributed to Europe Now, a political party founded by the crypto-friendly politician Milojko "Mickey" Spajić. The Montenegrin government claimed that Kwon has ties to Spajić, citing a letter Kwon sent from custody to the outgoing prime minister, Dritan Abazovic, stating that he and Spajić were business partners.
Opponents of Europe Now called for the Special State Prosecutor’s Office to investigate the allegations in Kwon's letter, while Europe Now was dismissive of it, calling the criticism of any Kwon-Spajić ties a political attack.
On Sunday, Europe Now won about a fourth of the seats in the Montenegrin parliament. The party is now looking to organize a coalition with other parties to form a government. As Europe Now's leader, Spajić has a shot at the top job in the Montenegrin government—prime minister.
Kwon is likely to be questioned by the Special State Prosecutor’s Office about his ties to Spajić. Kwon's next hearing is Friday, according to Radio Free Europe.
