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JAKARTA - Terraform Labs co-founder, Do Kwon, will reportedly be detained in Montenegro on a request for extradition, according to a report from the regional edition Radio Free Europe (RFE). He also faced questions about his relationship with a local political figure.

A spokesman for the Montenegro High Court told RFE that Kwon was ordered to be detained for six months while the court ruled a request for extradition from South Korea. The Seoul court issued an arrest warrant against Kwon in September. The case is referred to as "a case of financial fraud or the largest securities fraud ever in South Korea."

The United States has also requested Kwon's extradition to deal with charges from federal prosecutors and the United States Securities and Exchange Commission (SEC).

The Constitutional Court Montenegro has scheduled a hearing on June 16 regarding charges against Kwon and former Terraform Labs chief financial officer Han Chong-joon for falsifying travel documents. They were arrested on March 23 at Podgorica airport, Montenegro, while trying to go to Dubai.

Kwon is also expected to be questioned by the State Special Prosecutor's Office regarding his relationship with politician Milojko Spaji

Spaji Badminton denied having a relationship with Kwon, but their alleged relationship and possible financial donations from Kwon have been covered a lot by the media in the country.

Korean media reported that over the years, Do Kwon had secretly sponsored a leading Montenegro politician using illegal funds. Two days ago, the top court Montenegro approved Do Kwon's request for bail again, allowing him to be released from prison.

Lawyers Kwon and Chong-Joon initially got approval for a guarantee of 400,000 euros (IDR 65 billion) for everyone, but the decision was overturned in the appeal before his appeal was rejected.

Terra's Ecosystem from Terraform Labs collapsed in May 2022, causing losses estimated at up to USD 40 billion (IDR 596.6 trillion).


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