The co-founder of Terraform Labs awaits extradition to the USA or South Korea after completing a prison term in Montenegro for using counterfeit travel documents.
Do Kwon's Continued Detention in Montenegro
Do Kwon, the co-founder of Terraform Labs, who is anticipated to be extradited to the United States for criminal prosecution, is reportedly set to stay in Montenegrin custody until February.
According to a Bloomberg report dated December 12, authorities in the USA and South Korea have requested Montenegrin officials to extend Kwon's detention by two more months after his prison term ends. The Terraform Labs co-founder was apprehended in Montenegro in March for using forged travel documents and was sentenced to a four-month jail term.
Pending Extradition and Charges Against Kwon
Kwon, a South Korean national previously residing in Singapore, is facing charges in the USA and South Korea for his supposed involvement in the collapse of Terra. The Wall Street Journal, on December 7, reported that the USA would gain custody of Kwon prior to South Korea. Both nations have outstanding extradition requests as of the time of this report.
Should Kwon be extradited to the United States, he would confront eight criminal charges, including commodities fraud, securities fraud, wire fraud, and conspiracy to commit fraud and market manipulation in connection with his role at Terraform Labs. The U.S. Securities and Exchange Commission has also charged Kwon with “defrauding investors in a crypto scheme.”
Terra's Collapse and Its Impact on the Market
#Terra suffered a collapse in May 2022, a pivotal event considered by many to be a catalyst for the downturn in the cryptocurrency market. TerraUSD (UST) detached from its peg to the U.S. dollar, precipitating the subsequent bankruptcy of various firms, including Voyager Digital, BlockFi, Celsius Network, and #FTX .
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