Michaela
Do Kwon, the co-founder and former CEO of Terraform Labs, has officially been extradited to the United States to face criminal charges related to the collapse of the Terra Luna ecosystem.
Sources said that Kwon was extradited by Montenegrin authorities and Interpol at the Podgorica Airport border crossing.
On December 31, Montenegro’s Prime Minister Milojko Spajić confirmed Kwon’s extradition to the United States through a post on X.
“Our nation WELCOMES INNOVATION and legitimate crypto, AI and other tech entrepreneurs – but we have ZERO TOLERANCE FOR FRAUD,” Spajić wrote. “This extradition demonstrates our unwavering commitment to international justice and the rule of law!” he added.
The extradition took place four days after Montenegrin Justice Minister Bojan Božović approved Kwon’s transfer to the U.S., rejecting a petition from South Korea, where Kwon also faces charges and holds citizenship.
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Do Kwon spent four months in a Montenegrin prison for using fake travel documents and faced over a year of legal uncertainty as courts deliberated whether to send him to the U.S. or South Korea.
Each time a court seemed ready to make a ruling, Kwon’s legal team filed new appeals on various grounds, further delaying the extradition process and prompting officials to reconsider their decisions.
The U.S. Securities and Exchange Commission (SEC) brought a civil lawsuit against Terraform Labs and Kwon. In April, the court ruled both parties liable for fraud, leading to a settlement in which they agreed to pay approximately $4.5 billion in disgorgement, civil penalties, and interest.
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In March 2023, the U.S. Department of Justice filed eight felony charges against Do Kwon, including commodities fraud, wire fraud, and conspiracy to manipulate markets. It is still uncertain where Kwon is being detained and when he will face a U.S. court following his extradition.
The extradition of Kwon sparked a jurisdictional dispute between the United States and South Korea, as both nations sought to prosecute Kwon. The May 2022 crash wiped out $50 billion in value in just three days, leaving global investors reeling.
Read More
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- Former Justice Minister Claims Montenegro PM Linked to Do Kwon Case
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MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
