Do Kwon, the founder of Terraform Labs, is set to be extradited to the United States to face charges related to the 2022 crash of his cryptocurrencies, TerraUSD (UST) and Luna (LUNA). The collapse of UST and LUNA sent shockwaves through the crypto industry, causing widespread losses and raising concerns about the stability of decentralized finance. Kwon, who has been nicknamed “crypto’s Bernie Madoff,” has been accused of fraud and securities-law violations by both South Korean and U.S. authorities. Why was Do Kwon Arrested in Montenegro? Do Kwon was arrested in Montenegro in March 2023. He was accused of possession of forged travel documents. He attempted to board a private jet to Dubai using a fake Costa Rican passport. This triggered his arrest and subsequent discovery of additional forged documents, including a Belgian passport. By the time of his arrest, Kwon was already facing charges of fraud and securities law violations in both South Korea and the United States related to the collapse of UST and LUNA. Authorities believed that Kwon was a flight risk and was attempting to flee to avoid facing legal consequences. This suspicion was further fueled by his use of forged travel documents and his history of relocating frequently. Interpol had issued a red notice for Kwon’s arrest, facilitating international cooperation in apprehending him. Do Kwon to be extradited to US Back in November 2023, a Montenegrin court approved Kwon’s extradition but the decision to which country he will be extradited was not decided. Recently, as per the Wall Street Journal, Justice Minister Andrej Milovic, in closed-door meetings, has indicated his intention to send Kwon to the U.S. rather than South Korea, citing a prior agreement between the two countries. However, Kwon’s legal team has filed a last-ditch appeal against the extradition ruling, which will be heard before Milovic makes his final decision. While the exact date of the extradition remains uncertain, it appears likely that Kwon will soon face trial in the United States. This development could have significant implications for the future of cryptocurrency regulation and the ongoing debate surrounding decentralized finance. Luna Classic and UST’s Performance Luna Classic recently broke above $0.00025 and it was one of the best-performing cryptocurrencies but in the last 24 hours, LUNC has experienced a price pullback and the price has retreated below $0.00020. At the time of writing Luna Classic is trading marginally above $0.00020. Additionally, TerraClassic USD is also on the downtrend and has already lost 20% of its value in the last 7 days.
Do Kwon to be extradited to US, LUNC and UST Falls
