Do Kwon, a South Korean man behind the collapse of Terraform’s two cryptocurrencies, has been extradited to the United States, bringing an end to a lengthy legal battle that lasted over 18 months. The US accuses him of orchestrating a multi-billion dollar crypto asset securities fraud, responsible for the $40bn (£31.8bn) collapse of TerraUSD and Luna in 2022.
Kwon fled South Korea after a warrant was issued for his arrest, eventually ending up in Montenegro before being extradited to the US. He had previously been found guilty of forging documents by a Montenegrin court in March 2023. The extradition comes as a result of an agreement between Do Kwon and the Montenegrin Ministry of Justice, which approved the transfer earlier in December.
The collapse of Terraform Labs’ cryptocurrencies led to a significant sell-off across the crypto market, with losses estimated at $400bn (£318bn). Bitcoin briefly stood at over $100,000 per coin in December 2022. Do Kwon’s firm, Terraform Labs, ultimately filed for bankruptcy in the US in January 2024.
The extradition marks a major development in the ongoing investigation into the crypto crisis, with Do Kwon facing serious charges of securities fraud. The move is seen as a significant step towards holding those responsible accountable for the devastating losses suffered by investors.
Source: https://www.bbc.com/news/articles/cwy30n29qx5o