Terraform Labs Co-founder Do Kwon to be Extradited to the US for Criminal Charges
According to sources, Terraform Labs co-founder Do Kwon will be extradited to the United States rather than South Korea to face criminal charges. Justice Minister Andrej Milović in Montenegro plans to grant the US officials’ request for extradition. Kwon was previously arrested in Montenegro and sentenced to prison for using falsified travel documents. He is facing charges in both the US and South Korea for his alleged involvement in the collapse of Terraform Labs.
Extradition and Charges
If extradited to the US, Kwon will face eight charges, including commodities fraud, securities fraud, wire fraud, and conspiracy to defraud and engage in market manipulation. The US Securities and Exchange Commission has also accused Kwon of defrauding investors in crypto schemes.
Terraform Labs Collapse
The collapse of Terraform Labs in May 2022 triggered a cryptocurrency market downturn. Several firms, including Voyager Digital, BlockFi, Celsius Network, and FTX, filed for bankruptcy after TerraUSD (UST) depegged from the US dollar.
Uncertain Future
Prior to his arrest, Kwon’s whereabouts were largely unknown. While he will face officials in the US first, there is a possibility that he could still be charged in South Korea. Kwon has consistently denied committing fraud.
Hot Take: Do Kwon’s Extradition Signals Continued Crackdown on Crypto Fraud
The decision to extradite Do Kwon to the US reflects ongoing efforts to crack down on cryptocurrency-related fraud. Governments around the world are taking action against individuals involved in fraudulent schemes that have negatively impacted the crypto market. Kwon’s case highlights the international cooperation and coordination among law enforcement agencies to hold individuals accountable for their actions in the crypto space.
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