Former Crypto Billionaire Do Kwon to Face Fraud Charges in the US
Do Kwon, the founder of the Terra (LUNA) ecosystem and a former crypto billionaire, is set to be extradited to the United States to face fraud charges. This comes after Terra’s UST stablecoin and LUNA altcoin experienced a significant drop in value in 2022 due to issues with its pegging mechanism.
Kwon was apprehended while attempting to leave Montenegro for Dubai using a fake passport. After months of being unknown, his whereabouts were finally discovered. An appellate court initially revoked his extradition order but has now overturned that decision, ruling in favor of extradition.
Charges and Timing of Extradition Still Unclear
While it remains unclear when Kwon will be sent to the US and what specific charges he will face, the US Securities and Exchange Commission (SEC) has accused him and his company Terraform Labs of facilitating a multi-billion dollar fraud and violating federal securities laws.
District Judge Jed S. Rakoff supported the SEC’s request for summary judgment regarding allegations that Kwon and Terraform Labs offered and sold unregistered securities through LUNA and Mirror Protocol (MIR), their decentralized finance (DeFi) token.
Hot Take: Do Kwon’s Extradition Highlights Regulatory Crackdown on Crypto Fraud
The decision to extradite Do Kwon to the US reflects the increasing regulatory scrutiny on fraudulent activities within the cryptocurrency industry. As more cases emerge, authorities are taking action against individuals and companies involved in illicit practices.
This development serves as a reminder to crypto enthusiasts that maintaining transparency, adhering to regulations, and avoiding fraudulent activities are crucial for the long-term growth and stability of the crypto market.
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