In a dramatic turn of events, the extradition case of Do Kwon, the controversial founder of Terraform Labs, has been bounced back to a lower court in Montenegro. This decision, issued by the Montenegrin Supreme Court on April 5th, throws a wrench into the international legal wrangling surrounding Kwon's fate

Both the United States and South Korea have filed extradition requests for Kwon, each seeking to hold him accountable for the spectacular collapse of the Terra ecosystem in May 2022. This event, often referred to as the "Luna crash," resulted in billions of dollars in losses for investors and sent shockwaves through the cryptocurrency world.

The crux of the recent Supreme Court ruling lies in a procedural dispute. Prosecutors argued that the appellate court had overstepped its bounds by rejecting an appeal from Kwon's legal team and sending the case directly to the Supreme Court. The Supreme Court, however, asserted that its purview does not extend to cases involving competing extradition requests from multiple countries.

In their Friday ruling, the Supreme Court clarified their position: "The court's obligation is to determine whether the legal conditions for extradition have been met for the defendant in relation to each petition individually." Following this assessment, the "competent minister, not the court, decides on the permission and order of priority of extradition."

This decision effectively punts the case back to the High Court in Podgorica, Montenegro's capital. Here, the court will need to re-evaluate the extradition requests from both the US and South Korea, ensuring they comply with established legal frameworks. Ultimately, it will be up to Montenegro's Ministry of Justice to decide which extradition request to prioritize.

Do Kwon, who was initially arrested in Montenegro in March 2023 for using forged travel documents, has since been released within the country's borders as his extradition case unfolds. While the US and South Korea build their cases against him, Kwon faces accusations of fraud and misleading investors regarding the Terra network's stability and purported adoption as a viable payments technology.

The recent US Securities and Exchange Commission (SEC) lawsuit against Terraform Labs further complicates the picture. A Manhattan jury sided with the SEC, finding Kwon and his company liable for investor fraud through unregistered securities. Terraform Labs has contested this verdict, claiming the SEC lacked jurisdiction in the matter.

With legal battles on multiple fronts, Do Kwon and his extradition case remain firmly in the spotlight. The decision from the High Court in Podgorica will be a crucial turning point, determining which nation will have the opportunity to seek justice for the Terra ecosystem's collapse.