- Do Kwon is the founder of Terraform Labs
- A Montenegro court approved his extradition to South Korea
- The decision comes from numerous requests from South Korea and the U.S.
- U.S. federal prosecutors in New York charged him with fraud after the Terraform coin collapse
The Montenegro Court of Appeals upheld a lower court’s decision to extradite Do Kwon, founder of Terraform Labs, to South Korea.
What Charges Do Kwon Is Facing
After a lengthy legal battle and multiple appeals from South Korean and U.S. authorities, the decision was made to extradite Do Kwon.
U.S. federal prosecutors in New York charged him with fraud following the collapse of Terraform Labs’ cryptocurrency, Terraform, TerraUSD, and Luna, which caused investors to suffer losses totaling about $40 billion.
Specifically, TerraUSD was supposed to function as a stablecoin, maintaining a stable value by being tied to the U.S. dollar. Still, it fell dramatically, causing significant financial losses for retail investors worldwide.
Details of the Arrest
Montenegro authorities arrested him last year while trying to travel to Dubai on a fake Costa Rican passport.
He was serving a prison sentence in Montenegro for passport fraud before the final decision to where extricate U.S. or South Korea.
The Montenegrin appeals court’s decision is now legally binding, although the exact timeline for Kwon’s extradition remains uncertain.
Conclusion
The “Cryptocurrency King” faced the law, and we are increasingly seeing regulation achieve its goals.
One can remember how crypto was the Wild West just five years ago, but apparently, that is now ending.
