According to a Wall Street Journal report on December 7, Terraform Labs co-founder Do Kwon will be extradited to the United States.
According to a Wall Street Journal report on December 7, Terraform Labs co-founder Do Kwon will be extradited to the United States to face criminal charges instead of being sent to South Korea. Justice Minister Andrej Milović in Montenegro reportedly intends to grant the extradition request made by U.S. officials, according to sources quoted in the WSJ report.
Kwon, who was arrested in Montenegro in March for using falsified travel documents, had previously been sentenced to four months in prison. He is currently facing charges in both the U.S. and South Korea in connection with the collapse of Terraform Labs.
Milović stated that the public announcement regarding the extradition would be made "in a timely manner." If Kwon is extradited to the U.S., he will face eight charges related to his time at Terraform Labs, including commodities fraud, securities fraud, wire fraud, conspiracy to defraud, and engaging in market manipulation. In February, the U.S. Securities and Exchange Commission also filed charges against Kwon for allegedly defrauding investors in crypto schemes.
The collapse of Terraform Labs in May 2022 marked a significant event that triggered a downturn in the cryptocurrency market. During this time, TerraUSD (UST) became detached from the U.S. dollar, leading to numerous firms filing for bankruptcy, including Voyager Digital, BlockFi, Celsius Network, and FTX.
Prior to his arrest in Montenegro, Kwon's whereabouts had largely been unknown, with speculation that he may have been based in Singapore. While he is set to face officials in the United States first, legal experts have not ruled out the possibility of Kwon also being charged in South Korea. Kwon has consistently denied allegations of fraud.
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