Montenegro’s Constitutional Court has rejected an appeal by Do Kwon, the embattled co-founder of Terraform Labs, seeking to prevent his extradition. This decision closes a crucial legal avenue for the crypto mogul, whose downfall began with the catastrophic collapse of the Terra Luna ecosystem in 2022.

The court’s ruling, reported by Korea JoongAng Daily, unanimously upheld an earlier decision favoring extradition, citing legal inconsistencies in Kwon’s appeal. Both the United States and South Korea have requested his extradition on charges of fraud and financial crimes linked to the $40 billion Terra Luna crash.

Kwon’s troubles began in May 2022, when Terra Luna’s collapse erased billions in market value, shaking investor confidence in stablecoins and decentralized finance (DeFi). The event triggered global investigations into allegations of fraud, market manipulation, and securities violations. Kwon was arrested in Montenegro in March 2023 while allegedly using a forged passport.

In April, a U.S. court found Terraform Labs and Kwon liable for fraud, following charges by the Securities and Exchange Commission (SEC) that he misled investors and mishandled funds. The legal saga escalated when Terraform Labs agreed to a $4.47 billion settlement with the SEC in June, with Kwon personally fined over $200 million.

Adding to the controversy, Montenegro’s Prime Minister Milojko Spajic faced scrutiny after reports revealed he had invested $75,000 in Terra tokens in 2018, despite earlier denials. Documents uncovered by the SEC showed Spajic as one of Terraform Labs’ first investors, raising questions about his ties to the defunct crypto firm.

This extradition battle not only underscores Kwon’s precarious legal position but also highlights the growing international effort to hold crypto leaders accountable. As Montenegro weighs the geopolitical implications of its decision, the outcome may set a precedent for cross-border justice in the crypto world.