Do Kwon Faces US Fraud Charges - Terraform Labs Co-founder

Do Kwon to be Extradited to the U.S.

Do Kwon, the co-founder of the now-defunct cryptocurrency firm Terraform Labs, is set to be extradited from Montenegro to the United States. This development was initially reported by Bloomberg and will see Kwon facing federal fraud charges.

Background on the Charges

Kwon is currently facing legal proceedings in both the U.S. and South Korea. The collapse of Terraform Labs’ TerraUSD and Luna cryptocurrencies in 2022 resulted in losses exceeding $40 billion for investors.

A civil trial in April concluded with both Terraform and Kwon being held personally accountable for fraud, based on allegations brought forth by the U.S. Securities and Exchange Commission (SEC).

SEC Settlement

As part of a settlement with the SEC, Terraform Labs has agreed to pay $4.5 billion. This agreement aims to resolve the charges related to the cryptocurrency collapse.

Arrest and Extradition Details

Kwon’s arrest occurred in March 2023 at Podgorica Airport, the capital city of Montenegro. He was attempting to travel to Dubai at the time of his apprehension.

The timing of Kwon’s release to the U.S. remains uncertain. It is also unclear if Montenegro’s recent extradition decision overrides a prior order issued in August, which directed Kwon’s extradition to South Korea.

The situation is evolving, and further updates will be provided as they become available.