Do Kwon, “Terra King,” Extradited to US: Awaiting Fraud Trial.
Terraform Labs founder Do Kwon has been extradited to the US from Montenegro to face fraud charges in the $40 billion collapse of the Terra ecosystem in 2022.
Do Kwon was arrested in Montenegro in March 2023 when he tried to board a flight using a fake Costa Rican passport.
After the collapse of two cryptocurrencies, TerraUSD and Luna, in May 2022, Kwon had been on the run from authorities for nearly a year.
Montenegro Accepts Extradition to the US
The extradition decision was approved by the Montenegrin Constitutional Court after rejecting Kwon's final appeal. The Montenegrin Minister of Justice decided:
“Most of the legal criteria are in favor of the extradition request from the United States. Therefore, we decided to approve the extradition request of Kwon to the United States, while rejecting the extradition request from South Korea.”
Serious Accusations
In the United States, Do Kwon was indicted on multiple felony charges including fraud and conspiracy to commit fraud.
Similarly, South Korea has also filed corresponding charges against Kwon.
Terraform Labs, a company founded by Kwon, developed TerraUSD, a stablecoin designed to maintain a price of $1.
However, the collapse of TerraUSD caused a crisis in the cryptocurrency market, causing thousands of investors to suffer heavy losses.
US prosecutors accuse Kwon of misleading investors about the reliability of digital tokens. If convicted, Kwon could face decades in prison.
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