An appeals court in Montenegro has overturned a recent ruling to extradite cryptocurrency mogul and Terraform Labs founder, Do Kwon, to the United States to face fraud charges. The court cited procedural issues over who was the first to file a request for extradition - the U.S. or South Korea. Kwon, known as "the cryptocurrency king," was arrested nearly a year ago in Montenegro on an international arrest warrant in connection with a $40 billion crash of Terraform Labs' cryptocurrency, which devastated retail investors worldwide. Kwon and another individual were arrested at Podgorica Airport while trying to depart for Dubai using fake Costa Rican passports.

The High Court in Montenegro had initially decided to hand over Kwon to the U.S., where he faces fraud charges by federal prosecutors in New York. South Korean prosecutors have also sought his extradition. However, the Court of Appeals annulled the decision and ordered the lower court to repeat the process. Kwon is currently serving a four-month prison sentence in Montenegro for using the fake passport. The final decision on his extradition has yet to be made, leaving Kwon's fate uncertain as he remains a central figure in the investigation into the implosion of Terraform's digital currencies.