The prolonged legal saga concludes as Kwon's extradition from Montenegro is confirmed amidst serious fraud allegations linked to the collapse that devastated the cryptocurrency market.
**Do Kwon to be Extradited to the US Following Crypto Scandals**
**Do Kwon to be Extradited to the US Following Crypto Scandals**
South Korean crypto entrepreneur Do Kwon faces US extradition over the collapse of Luna and TerraUSD.
In a significant move, South Korean cryptocurrency entrepreneur Do Kwon will be extradited to the United States from Montenegro due to his involvement in the collapse of TerraUSD and Luna tokens. Authorities in both the US and South Korea have pursued Kwon's extradition for months, accusing him of fraud that contributed to a staggering loss of approximately $40 billion (£31.7 billion) for investors and severely impacted worldwide crypto markets.
Although Montenegro lacks extradition treaties with either the US or South Korea, Kwon's legal battles have reached a conclusion after more than 18 months of court rulings. The Montenegrin Ministry of Justice announced the decision, stating that the majority of legal criteria supports the US's extradition request. Notably, Kwon has agreed to be extradited to both countries.
In February, the US Securities and Exchange Commission (SEC) filed charges against Kwon and his company Terraform Labs, claiming they orchestrated a fraudulent scheme involving billions in crypto asset securities. SEC Chairman Gary Gensler stated that Kwon and Terraform failed to deliver honest disclosures regarding the stability of significant assets like Luna and TerraUSD.
In May 2022, both tokens experienced a catastrophic decline, causing widespread panic and a sell-off across major cryptocurrencies, including Bitcoin. Following this event, Interpol issued a "red notice" for Kwon, who had absconded from Singapore to Serbia, ultimately leading to his capture in Montenegro. Kwon was detained in March 2023 while attempting to board a Dubai-bound flight from Podgorica Airport. Prior to this, he received a four-month prison sentence in Montenegro for document forgery.
Meanwhile, Hon Chang-joon, Kwon's former finance officer at Terraform Labs, was extradited to South Korea in February 2023 after serving time in Montenegro for related fraud charges. Kwon's impending extradition underscores the ongoing scrutiny facing the cryptocurrency sector and the push for accountability in the wake of its significant failures.
Although Montenegro lacks extradition treaties with either the US or South Korea, Kwon's legal battles have reached a conclusion after more than 18 months of court rulings. The Montenegrin Ministry of Justice announced the decision, stating that the majority of legal criteria supports the US's extradition request. Notably, Kwon has agreed to be extradited to both countries.
In February, the US Securities and Exchange Commission (SEC) filed charges against Kwon and his company Terraform Labs, claiming they orchestrated a fraudulent scheme involving billions in crypto asset securities. SEC Chairman Gary Gensler stated that Kwon and Terraform failed to deliver honest disclosures regarding the stability of significant assets like Luna and TerraUSD.
In May 2022, both tokens experienced a catastrophic decline, causing widespread panic and a sell-off across major cryptocurrencies, including Bitcoin. Following this event, Interpol issued a "red notice" for Kwon, who had absconded from Singapore to Serbia, ultimately leading to his capture in Montenegro. Kwon was detained in March 2023 while attempting to board a Dubai-bound flight from Podgorica Airport. Prior to this, he received a four-month prison sentence in Montenegro for document forgery.
Meanwhile, Hon Chang-joon, Kwon's former finance officer at Terraform Labs, was extradited to South Korea in February 2023 after serving time in Montenegro for related fraud charges. Kwon's impending extradition underscores the ongoing scrutiny facing the cryptocurrency sector and the push for accountability in the wake of its significant failures.
