The disgraced co-founder of the Terra (LUNA) ecosystem is scheduled to appear in court in the United States today after being recently extradited from Montenegro.
According to a new report from Reuters, Dokwon is facing fraud charges in the United States in connection with the multibillion-dollar Terra downfall in 2022 and is scheduled to make his first court appearance in the matter.
Mr. Kwon was first arrested in the Balkan Peninsula in March 2023 when he was caught trying to board a flight to the United Arab Emirates with a forged Costa Rican passport. He has been evading authorities since the collapse of Terra and its related assets, TerraUSD and LUNA.
TerraUSD was an algorithmic “stablecoin” designed to mint more LUNA as needed as a means of fixing the price at $1. However, this mechanism failed and the supply of both assets was greatly inflated, causing their prices to plummet.
After his arrest, two countries, the United States and South Korea, wanted him extradited to face criminal charges. However, last month, Montenegro’s highest court rejected Korea’s request and ruled to extradite Kwon to the United States.
The court recently dismissed Kwon’s appeal, saying he met all criteria for extradition to the United States.
According to the report, Kwon was indicted on two counts each of securities fraud, wire fraud, merchandise fraud, and conspiracy. He is scheduled to appear in federal court in New York. If found guilty on all counts, he could face decades in prison.
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