Do Kwon, the founder of Terraform Labs, has been extradited to the United States to face criminal charges related to the Terra Luna collapse. Montenegro’s Prime Minister Milojko Spajić confirmed the extradition on Tuesday.
Kwon’s Extradition and Arrival in the U.S.
Kwon was extradited at the Podgorica Airport border crossing with assistance from Montenegrin officials and Interpol. Spajić confirmed the transfer in a December 31 post on X. While Kwon’s current location remains unknown, Spajić emphasized Montenegro’s commitment to fighting fraud.
“Our nation WELCOMES INNOVATION and legitimate crypto, AI, and other tech entrepreneurs—but we have ZERO TOLERANCE FOR FRAUD,” Spajić said. “This extradition shows our dedication to international justice and the rule of law!”
Kwon’s Escape and Pursuit by Authorities
The extradition follows months of legal battles. The United States had long sought Kwon’s transfer from his home country, South Korea. In May 2022, the collapse of his Terra USD and LUNA tokens erased more than $40 billion from the cryptocurrency markets.
After the crash, Kwon fled authorities, triggering a manhunt across Asia and Europe. Interpol pursued him, but Kwon denied he was on the run. Instead, he stated he had cooperated with authorities.
“I am not ‘on the run’ or anything similar – for any government agency that has shown interest to communicate, we are in full cooperation, and we don’t have anything to hide,” Kwon wrote in a September 2022 post.
Kwon’s Arrest and Criminal Charges
In March 2023, Kwon was arrested in Montenegro for falsifying travel documents while trying to flee to Dubai. He has since remained in custody there. In the United States, he faces eight criminal charges, including securities fraud, commodities fraud, and wire fraud.
Despite the charges, this is not Kwon’s first encounter with the U.S. legal system. In 2023, the U.S. Securities and Exchange Commission (SEC) sued Kwon and Terraform Labs for defrauding investors through a large cryptocurrency scheme.
SEC Settlement and Investor Impact
In June 2024, Kwon and Terraform Labs agreed to a $4.5 billion settlement with the SEC. SEC Chair Gary Gensler said, “Terraform and Do Kwon’s fraudulent activities caused devastating losses for investors, in some cases wiping out entire life savings. Their fraud serves as a reminder that, when firms fail to comply with the law, investors get hurt.”
This marks another chapter in Kwon’s legal struggles, which have caused significant harm to both the cryptocurrency market and its investors.
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