Disgraced Terraform Labs founder Do Kwon has officially been extradited to the United States to face criminal charges following the crash of the Terra Luna ecosystem, Montenegro Prime Minister Milojko Spajić confirmed Tuesday.
Do Kwon Extradited Over Terra Luna Collapse
According to reports, Kwon was extradited at the Podgorica Airport border crossing by Interpol and Montenegrin officials.
In a December 31 X post, Spajić confirmed Kwon’s extradition to the United States, though it remains unclear just exactly where the purported crypto fraudster is being held.
“Our nation WELCOMES INNOVATION and legitimate crypto, AI and other tech entrepreneurs – but we have ZERO TOLERANCE FOR FRAUD,” Spajić said. “This extradition demonstrates our unwavering commitment to international justice and the rule of law!”
Terraform Labs Founder’s Life On The Run
News of Kwon’s arrival in the United States comes after the country battled for his extradition for months against the one-time crypto tycoon’s native South Korea.
Kwon first came under fire in May 2022 when his algorithmic stablecoins Terra USD and LUNA crushed, effectively erasing over $40 billion from cryptocurrency markets
The purported crypto fraudster then fled from authorities in a months-long manhunt across Asia and Europe as Interpol pursued the one-time wunderkind, though Kwon denied being on the lam from global law enforcement officials.
“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 X post.
The former founder was originally arrested in Montenegro in March 2023, where he has since been in custody, for falsifying travel documents as he attempted to flee the Balkan country for Dubai.
Kwon is facing eight criminal counts in the United States, including securities fraud, commodities fraud, and wire fraud.
Despite the severity of the charges, this will not be Kwon’s first experience with the U.S. judicial system.
The United States Securities and Exchange Commission (SEC) sued the Stanford grad and Terraform Labs back in 2023 for defrauding investors as part of the massive crypto scheme.
Both Kwon and the crypto firm agreed to pay a combined total of $4.5 billion as part of a settlement agreement with the federal regulator in June 2024.
“Terraform and Do Kwon’s fraudulent activities caused devastating losses for investors, in some cases wiping out entire life savings,” outgoing SEC chair Gary Gensler said in a statement. “Their fraud serves as a reminder that, when firms fail to comply with the law, investors get hurt.”
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