Montenegrin authorities have extradited cryptocurrency entrepreneur Kwon Do-kwon to the United States on fraud charges related to the collapse of the $40 billion Terra ecosystem in 2022.
According to Reuters, Terraform Labs co-founder Kwon was arrested in Montenegro in March while trying to board a plane using a fake Costa Rican passport.
He has been evading authorities since the TerraUSD and Luna cryptocurrencies crashed in May 2022.
This extradition follows the Montenegrin Constitutional Court’s rejection of Kwon’s final appeal.
“We conclude that most of the standards set forth in the law support the extradition request by U.S. authorities.
Accordingly, the Minister of Justice made a decision to approve Kwon Do-hyung’s extradition to the United States and simultaneously dismiss South Korea’s extradition request.”
Mr. Kwon is facing several charges, including fraud and conspiracy, in the United States. He faces similar charges in Korea.
Professor Kwon’s Terraform Lab created TerraUSD, a “stablecoin” designed to keep the value of one dollar constant. The collapse triggered a larger downturn in the cryptocurrency market and caused significant losses to thousands of investors.
U.S. prosecutors allege that Kwon misled investors about the stability of his digital tokens. If found guilty, he could potentially face decades in prison.
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