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Do Kwon Will Be Extradited to United States Following Montenegro Court Ruling: Report

February 21, 2024

Do Kwon, former crypto billionaire and founder of the Terra (LUNA) ecosystem, will be sent to the United States to face fraud charges.

In 2022, Terra’s UST stablecoin and its associated altcoin LUNA went to virtually zero after its pegging mechanism didn’t work as intended, wiping out roughly $40 billion in value within days.

Kwon was eventually arrested attempting to leave Montenegro on a plane to Dubai allegedly using a fake Costa Rican passport, after months of his whereabouts being unknown.

Earlier this month, an appellate court revoked Kwon’s extradition to the US, saying that the order was “incomprehensible” and lacked “decisive facts.”

However, according to local news outlet Pobjeda, the courts have appeared to have overturned the decision, and have ruled in favor of extradition to the US.

It’s still unclear when Kwon will head to the United States and what specific charges he will be facing, but the U.S. Securities and Exchange Commission (SEC) has alleged that Kwon and his company Terraform Labs facilitated a multi-billion dollar fraud and violated federal securities laws.

District Judge Jed S. Rakoff sided with the SEC’s request for summary judgment in terms of the regulator’s allegations that Kwon and Terraform Labs offered and sold the project’s native token, LUNA, and its decentralized finance (DeFi) token Mirror Protocol (MIR) as unregistered securities.

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Featured Image: Shutterstock/GrandeDuc