Montenegro Extradites Terraform Co-Founder Do Kwon to US
raform Labs Bankruptcy Plan for Wind-down Following SEC Settlement
In February 2023, the US Securities and Exchange Commission (SEC) filed a lawsuit against Kwon and Terraform Labs, alleging market manipulation, leading to a US$4.5B (AU$7.2B) settlement and Kwon denying any wrongdoing.
Former CEO of Terraform Labs, Do Kwon, found himself facing charges of securities fraud in the United States and South Korea following the collapse of TerraUSD and Luna cryptocurrencies. He was extradited by Montenegro to the US on December 31 and handed over to FBI agents. Kwon is accused of misleading US investors about TerraUSD’s stability, resulting in significant losses and regulatory scrutiny. Despite Montenegro not having formal extradition agreements with the US or South Korea, the extradition was allowed by the justice ministry after a ruling by the Constitutional Court rejecting Kwon’s appeal.
The collapse of TerraUSD and Luna in May 2022 led to one of the most severe financial crises in the crypto industry, with both tokens losing over 99% of their value in just two days. Kwon, formerly known as the “King of Cryptocurrency,” faces legal proceedings in both the US and South Korea for his role in the collapse. The US Securities and Exchange Commission (SEC) has filed a lawsuit against Kwon and Terraform Labs, alleging market manipulation and leading to a substantial settlement.
