Terraform Labs Founder Do Kwon Extradited to US for Fraud Charges

Do Kwon, a well-known name in the crypto world, will soon be extradited to the United States after a decision by Montenegro’s justice system. The news comes after many months of legal battles and careful checks. Kwon faces charges related to one of the biggest failures in cryptocurrency history.

In May 2022, the crypto market had big ups and downs, which caused investors to lose money.  Two digital coins, TerraUSD and Luna, lost almost all their worth, wiping out about $40 billion from the market in just a few days. This disaster was one of the worst failures in the history of crypto and Do Kwon, a South Korean entrepreneur was the mastermind behind it all.

The U.S. Securities And Exchange Commission Fined Kwon And His Firm $4.5 Billion

In June 2024, a jury in New York decided against Kwon and Terraform Labs, saying they misled people about the safety of TerraUS and managed customer money carelessly which caused big losses. Kwon and Terraform Labs also made false promises to boost the Terra project.

Earlier this year, The U.S. Securities and Exchange Commission (SEC) fined Kwon and his firm $4.5 billion. Now, the U.S. wants to press charges against Kwon for fraud and dishonesty.

Montenegro’s Minister of Justice, Bojan Božović, has now agreed to Kwon’s move to the United States after a careful look by the country’s Supreme Court.

While South Korea wanted him to return, the Ministry focused on the U.S. request, saying the charges were more serious and considering other legal reasons. This decision finished months of court discussions, as Montenegro didn’t have direct rules for sending someone to either country.

In September 2022, Interpol sent a “red notice” to Kwon. Authorities found him in several countries before arresting him in Montenegro in March last year. He was stopped at Podgorica Airport while trying to fly to Dubai with fake documents.

The Trial Could Set Rules For Handling Misconduct In The Crypto World

In Montenegro, Kwon spent four months in jail for creating fake documents. After he was released, authorities held him again while deciding where to send him.

Now that Montenegro has made its choice, Kwon will go to the U.S. Experts believe this case could change how governments deal with similar cases in the future.  Kwon’s move to the U.S. is an important moment in this story. When he gets to New York, he’ll face trial for his role in one of the biggest failures in crypto history.

This trial could show how authorities will handle bad actions in the crypto world, which has often been criticized for being too free and without enough rules.

For the many people who lost their money in the Terra crash, Kwon’s move to the U.S. gives hope for justice—and maybe some peace of mind.