Montenegrin authorities extradited crypto entrepreneur Do Kwon to the US on Sunday to face fraud charges related to the $40 billion collapse of the Terra ecosystem in 2022.
According to Reuters a reportKwon, who co-founded Terraform Labs, was arrested in Montenegro last March while trying to board a plane using a fake Costa Rican passport.
He has evaded authorities since the collapse of his cryptocurrencies TerraUSD and Luna in May 2022.
The extradition came after the Constitutional Court of Montenegro rejected Kwon’s final appeal.
He concluded that the majority of the criteria stipulated in the law support the extradition request from the competent authorities in the United States of America.
Accordingly, the Minister of Justice issued a decision approving the extradition of Kwon Do Hyung to the United States, while rejecting the extradition request submitted by the Republic of Korea.
Kwon faces multiple charges in the United States, including fraud and conspiracy. He also faces similar charges in South Korea.
Kwon’s company Terraform Labs created TerraUSD, a “stablecoin” designed to maintain a fixed value of $1. Its collapse led to a decline in the broader cryptocurrency market and caused significant losses for thousands of investors.
US prosecutors allege that Kwon misled investors about the stability of his digital currencies. If convicted, he likely faces decades in prison.
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