Do Kwon to be Sent to the US for Fraud Allegations Tied to Terra's $40 Billion Collapse

Do Kwon, known as the co-creator of the now-failed cryptocurrency enterprise Terraform Labs, is set for extradition to the United States to address federal charges of fraud. This development was confirmed on Friday by Montenegro's Ministry of Justice, occurring over a year following Kwon's apprehension in the nation.

Kwon faces legal challenges in both the United States and South Korea after the 2022 downfall of the TerraUSD stablecoin and its partner token, Luna, which led to investor losses amounting to $40 billion. Both countries have been vying for Kwon's extradition, with each submitting their formal requests and eagerly awaiting Montenegro's verdict.

According to a translated excerpt from the Ministry of Justice in Montenegro, "It has been determined that the majority of the legal criteria support the United States' request for extradition." Although this statement was issued, it fails to specify when Kwon will be handed over. Further ambiguities persist, as highlighted by previous decisions favoring an extradition to South Korea, which had been declared in August.

In New York, federal authorities filed charges against Kwon for offenses including wire fraud, commodities fraud, securities violations, and conspiracy aimed at market deception and manipulation, which occurred last year. Moreover, in a June resolution, Terraform Labs and Kwon reached an agreement to disburse over $4.5 billion in a separate settlement related to a lawsuit brought forth by the Securities and Exchange Commission.