The Supreme Court of Montenegro has reportedly nullified the extradition of disgraced Terraform Labs co-founder Kwon Do-hyung to South Korea.

According to local daily Vijesti, the Montenegrin top court on Friday accepted a request by the prosecutors' office, remanding the case to a lower court.

While the Podgorica appeals court is set to retry the case, both South Korean and U.S. prosecutors are demanding the Korean national be handed over in relation to the crash of Terraform Labs' TerraUSD and Luna coins.

Investors lost over 40 billion dollars on the two tokens when the TerraUSD peg to the dollar failed in May 2022. 

Meanwhile, a jury in Manhattan found Terraform Labs and Kwon liable on civil fraud charges on Friday, agreeing with the U.S. Securities and Exchange Commission that the accused misled investors before their 2022 crash.