Is Terra co-founder Do Kwon facing extradition to the United States? This question has been circulating in the cryptocurrency world, and the latest reports suggest that Kwon will remain in custody in Montenegro until February. This comes after requests from U.S. and South Korean authorities for Montenegrin officials to extend Kwon’s detention following the end of his prison term.
A Glimpse into Do Kwon’s Legal Troubles
Do Kwon, one of the founders of Terraform Labs, was apprehended in Montenegro in March for using falsified travel documents. He was subsequently sentenced to four months in prison. Kwon, who is a South Korean national and was previously based in Singapore, is facing charges in both the U.S. and South Korea. These charges are connected to his alleged involvement in the downfall of Terra.
As per a report by The Wall Street Journal on December 7, the U.S. is set to take custody of Kwon before South Korea, with both countries having extradition requests pending at the time of writing.
The Charges Against Kwon
If extradited to the United States, Terra co-founder Do Kwon will face a total of eight criminal charges. These include commodities fraud, securities fraud, wire fraud, and conspiracy to defraud and engage in market manipulation during his tenure at Terraform Labs. The U.S. Securities and Exchange Commission (SEC) has also charged Kwon with “defrauding investors in crypto schemes.”
The Aftermath of Terra’s Collapse
Terra collapsed in May 2022, an event that many believe marked the beginning of a downturn in the crypto market. TerraUSD (UST), a stablecoin pegged to the U.S. dollar, lost its peg, and several companies filed for bankruptcy in the aftermath. These companies include Voyager Digital, BlockFi, Celsius Network, and FTX.
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