Do Kwon, co-founder of Terraform Labs, was extradited to the US on fraud charges that led to the collapse of TerraUSD and Luna cryptocurrencies and losses of 40 billion $
Key body parts of Do Kwon, who was arrested in Montenegro in March 2023, were handed over to FBI agents following a ruling by the country’s Supreme Court. The founder of Terraform Labs is accused of deceiving investors about the stability of TerraUSD and Luna cryptocurrencies, which led to the collapse of the platform in 2022; TerraUSD was introduced as a stablecoin with a fixed price of $1. Its collapse and the subsequent collapse of Luna led to global losses in the cryptocurrency market.
Kwon has been on the run from law enforcement for a long time after fleeing South Korea, and has been accused of financial fraud and tax evasion. In 2023, he tried to leave Montenegro using forged documents, but was detained at Podgorica airport. In February 2023, the Securities and Exchange Commission and the US Securities and Exchange Commission (SEC) issued an order against Mr. Kwon and charged him blockchain platform in financial fraud.
The extradition of Mr. Du Kwong to the US is an important step in the fight against financial crimes in the cryptocurrency industry. This case highlights the importance of international cooperation in regulating digital asset markets and preventing fraud.