The Court of Appeal of Montenegro has overturned a decision allowing for the extradition of Do Kwon, the Former CEO of Terraform Labs, to either the United States or South Korea. Instead, Kwon's defense has successfully appealed this matter based on a procedural error.

According to a report by Coindesk, citing documents shared by the court on Tuesday, the judge overseeing the case failed to grant Kwon the opportunity to present his stance regarding the extradition request from the United States. This is a mandatory step provided in the laws of Montenegro.

This oversight has necessitated the case to be referred back to the Podgorica Basic Court for a retrial. This reversal marks a pivotal moment in the legal battle involving Kwon, who faces imprisonment in Montenegro due to charges related to falsified documents.

Kwon's Case Referred for Retrial

The latest saga revolves around international requests for Kwon's extradition due to the collapse of his multi-billion dollar crypto venture, Terraform Labs, in May of 2022. The latest twist emerged when Montenegro's Appeals Court invalidated the previous decision by the Podgorica High Court, which initially approved Kwon's extradition.

Kwon's legal entanglement spans across borders, with both the United States and South Korea vying for his extradition to address criminal charges connected to the collapse of Terraform Labs.

Legal Battles and Extradition Uncertainty

Last month, the High Court of Montenegro declined Kwons’ appeal against his four-month prison sentence for falsifying documents, Finance Magnates reported. Kwon, along with fellow executive Han Chang-Joon, were arrested in March.

The court in Montenegro's capital, Podgorica, stated that the four-month prison term was a fitting punishment for the crime. Moreover, the court emphasized the importance of seizing passports and identity cards belonging to Kwon and Chang-Joon as a necessary security measure to prevent possible future criminal actions by the duo.

Additionally, Kwon and Terraform Labs face a class action lawsuit comprised of more than 300 parties. This case was filed in Singapore and has recently gained traction following the High Court's decision to dismiss the defendants' appeal.

This legal entanglement emerged after the devaluation of the UST token, leading to numerous lawsuits against Terraform Labs. This particular class action, initiated in September 2022, represents 377 parties affected by the collapse of the Terra ecosystem.