Terraform Labs co-founder Do Kwon will face fraud charges in the US

Terraform Labs' Do Kwon to face U.S. fraud charges; extradition pending.

: Terraform Labs co-founder Do Kwon will be extradited from Montenegro to the U.S. for federal fraud charges. In 2022, the crash of TerraUSD and Luna led investors to lose over $40 billion. Terraform Labs agreed to a $4.5 billion settlement in April after a civil trial. Kwon's extradition timeline remains unclear.

Do Kwon, the co-founder of Terraform Labs, is set to be extradited from Montenegro to the United States to face charges of federal fraud. This follows a significant downfall of his created cryptocurrencies, TerraUSD and Luna, which collapsed in 2022 resulting in a massive loss of over $40 billion for investors.

In the wake of this, Kwon and his company were deemed liable for fraud in a civil trial concerning allegations from the U.S. Securities and Exchange Commission in April. Terraform Labs agreed to settle by paying $4.5 billion. Do Kwon's legal troubles also extend to South Korea, as he faces fraud charges there as well.

Kwon was apprehended in March 2023, in Podgorica, Montenegro, as he attempted to travel to Dubai. The exact timing of his extradition to the U.S. remains unspecified, especially when considering an earlier decision from August that planned to extradite him to South Korea instead.

CryptocurrencyFraud ChargesExtradition