Do Kwon, the South Korean crypto baron and fugitive, has been extradited to the US after happening the run in late 2022. Kwon was the person behind the corporate Terraform, which ran the cryptocurrencies TerraUSD and Luna, each of which collapsed in 2022. That sparked a contagion within the wider crypto market, and so they’re estimated to have value buyers $40 billion USD.
Do Kwon fled South Korea shortly after the crash, after an arrest warrant was issued, and finally pitched up in Montenegro. He was arrested there in March 2023 after making an attempt to board a flight to Dubai, since when he is been engaged in preventing his extradition: Montenegro doesn’t have an extradition treaty with both South Korea or the US.
However in December 2024 the Montenegrin Ministry of Justice authorized his extradition to the US, the Supreme Court docket having dominated all circumstances have been fulfilled, and claims Do Kwon himself agreed to it. The onetime king of crypto was handed over to the Feds at Podgorica airport, added Montenegro’s inside ministry in an announcement.
Do Kwon will face fees of getting deceived buyers concerning the stability of the TerraUSD cryptocurrency, a so-called stablecoin which is meant to carry its worth towards a real-world asset (on this case the US greenback), and the way an app was utilizing the Terraform blockchain. The US says he Kwon was behind the failure of each belongings and is responsible of “orchestrating a multi-billion greenback crypto asset securities fraud.” The fees embrace conspiracy to defraud, commodities fraud, securities fraud, and wire fraud.
Kwon has denied any wrongdoing till this level, although his plea may change now that he is within the US justice system.
Do Kwon was each the boss and public face of TerraUSD and the self-described “Lunatic” driving the Luna cryptocurrency. The collapse of each in Might 2022 noticed their worth plunge to near-zero, with Terraform Labs dropping greater than 99% of its worth in 48 hours, sparking a wider panic and a lack of round $40 billion on crypto markets. That is thought-about the key issue behind that yr’s wider crypto disaster, which acquired so dangerous it even dinked the crypto sector’s poster boys together with Bitcoin and Ethereum. Quite a few smaller crypto companies went underneath, in addition to obvious giants like FTX (with that firm’s founder Sam Bankman-Fried now doing 25 years).
After his escape to Montenegro, Do Kwon had tried to argue he ought to be extradited to South Korea (he’s from Seoul) quite than being despatched to the US. However he most likely did not endear himself to the Montenegrin authorities by arriving on a pretend passport, and later attempting to go away with one.
Terraform Labs unsuccessfully fought the US indictment earlier than submitting for chapter within the US in January 2024. Do Kwon agreed in June 2024 to pay an $80 million civil advantageous and be banned from crypto transactions as a part of a $4.55 billion settlement Terraform reached with the US Securities and Trade Fee.
Do Kwon will quickly seem earlier than U.S. Justice of the Peace Choose Robert Lehrburger in Manhattan federal courtroom. It is a far cry from his heyday in 2021, when the king of the “Lunatics” may do no incorrect. All the time outspoken, Do Kwon even tried to brazen it out when the whole lot began collapsing round him. In his final interview up to now, he acquired philosophical concerning the prospect of jail: “Life is lengthy.” Sure, should you’re fortunate. However once you carry the can for one thing like this, the jail time most likely shall be too.
