Terraform Co-founder, Do Kwon, Faces Extradition to US for Crypto Fraud

By: Eva Baxter

Do Kwon, the co-founder and former CEO of Terraform Labs, has been reported to face extradition to the U.S. over criminal charges. Kwon had been embroiled in a jurisdictional battle between the U.S. and South Korea, after being arrested and charged in Montenegro.

Last month, it was reported that Kwon could be extradited to either the U.S. or South Korea. The necessary legal conditions for his extradition had been met according to the Montenegro High Court. These charges are related to serious allegations of fraud and securities law violations tied to the collapse of the Terra algorithmic TerraUSD stablecoin and its associated cryptocurrencies, which caused significant losses for crypto investors.

The final decision lies with Montenegro's Minister of Justice who will be assessing the appeal put forth by Kwon's lawyers. It's believed that Kwon will be sent to the U.S. to answer for his crimes, despite having previously consented for extradition to South Korea. The matter is expected to be decided by Dec. 15.

Indeed, the blowups of Kwon's UST (USTC, previously UST) and LUNA tokens fuelled a crisis that reverberated far and wide, impacting the entire crypto industry in 2022.