Do Kwon, the co-founder of Terraform Labs, has been extradited from Montenegro to the United States to face multiple fraud charges. Kwon is accused of misleading investors about the stability of the TerraUSD cryptocurrency and its associated app, leading to significant financial losses.
The extradition took place at Podgorica airport, where U.S. law enforcement, including FBI agents, took custody of Kwon. These charges stem from the collapse of TerraUSD in May 2022, which destabilized cryptocurrency markets.
Kwon was arrested in March 2023 while attempting to leave Montenegro using falsified documents. He also faces charges in South Korea. Although Kwon denies any wrongdoing, the Montenegrin Justice Minister ordered his extradition following a Supreme Court ruling.
In addition to the U.S. charges, Kwon and Terraform Labs were sued by the U.S. Securities and Exchange Commission (SEC) in February 2023 for causing approximately $40 billion in losses related to the TerraUSD and Luna cryptocurrencies.
Kwon’s extradition marks a significant development in the legal proceedings against him, as authorities in both the United States and South Korea continue to pursue charges related to the collapse of Terraform Labs’ cryptocurrencies. The outcome of these proceedings could have far-reaching implications for the cryptocurrency industry and its regulatory landscape.
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