Disgraced Terraform Labs founder Do Kwon has formally been extradited to the US to face prison expenses following the crash of the Terra Luna ecosystem, Montenegro Prime Minister Milojko Spajić confirmed Tuesday.
Do Kwon Extradited Over Terra Luna Collapse
In keeping with stories, Kwon was extradited on the Podgorica Airport border crossing by Interpol and Montenegrin officers.
In a December 31 X submit, Spajić confirmed Kwon’s extradition to the US, although it stays unclear simply precisely the place the purported crypto fraudster is being held.
“Our nation WELCOMES INNOVATION and legit crypto, AI and different tech entrepreneurs – however we’ve got ZERO TOLERANCE FOR FRAUD,” Spajić mentioned. “This extradition demonstrates our unwavering dedication to worldwide justice and the rule of regulation!”
Terraform Labs Founder’s Life On The Run
Information of Kwon’s arrival in the US comes after the nation battled for his extradition for months in opposition to the one-time crypto tycoon’s native South Korea.
Kwon first got here underneath fireplace in Could 2022 when his algorithmic stablecoins Terra USD and LUNA crushed, successfully erasing over $40 billion from cryptocurrency markets
The purported crypto fraudster then fled from authorities in a months-long manhunt throughout Asia and Europe as Interpol pursued the one-time wunderkind, although Kwon denied being on the lam from world regulation enforcement officers.
I’m not “on the run” or something related – for any authorities company that has proven curiosity to speak, we’re in full cooperation and we don’t have something to cover
— Do Kwon
(@stablekwon) September 17, 2022
“I’m not “on the run” or something related – for any authorities company that has proven curiosity to speak, we’re in full cooperation and we don’t have something to cover,” Kwon wrote in a September 2022 X submit.
The previous founder was initially arrested in Montenegro in March 2023, the place he has since been in custody, for falsifying journey paperwork as he tried to flee the Balkan nation for Dubai.
Kwon is going through eight prison counts in the US, together with securities fraud, commodities fraud, and wire fraud.
Regardless of the severity of the fees, this is not going to be Kwon’s first expertise with the U.S. judicial system.
America Securities and Change Fee (SEC) sued the Stanford grad and Terraform Labs again in 2023 for defrauding buyers as a part of the large crypto scheme.
Each Kwon and the crypto agency agreed to pay a mixed whole of $4.5 billion as a part of a settlement settlement with the federal regulator in June 2024.
“Terraform and Do Kwon’s fraudulent actions brought on devastating losses for buyers, in some circumstances wiping out complete life financial savings,” outgoing SEC chair Gary Gensler mentioned in a press release. “Their fraud serves as a reminder that, when corporations fail to adjust to the regulation, buyers get damage.”
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