Allegedly, Terraform Labs co-founder Do Kwon is set to be extradited to the United States rather than South Korea to confront criminal charges, as reported by the Wall Street Journal on December 7. The extradition decision, set to be authorized by Montenegro's Justice Minister Andrei Milovic, follows a request from U.S. authorities, according to sources familiar with the matter. Kwon had been detained in Montenegro in March and sentenced to four months in prison for using counterfeit travel documents. Besides, he faces charges in both the United States and South Korea linked to the Terraform Labs controversy.
Milovic reportedly plans to announce the extradition decision "in a timely manner." Should he be extradited to the U.S., Kwon confronts eight charges, including commodities fraud, securities fraud, wire fraud, and conspiracy to defraud and engage in market manipulation associated with his tenure at Terra. The Securities and Exchange Commission (SEC) accused Kwon in February of being involved in a "cryptocurrency scheme" that defrauded investors. The collapse of Terraform Labs in May 2022 marked a significant event that contributed to the downturn in the cryptocurrency market, leading to the detachment of TerraUSD (UST) from the U.S. dollar and causing several companies like Voyager Digital, BlockFi, Celsius Network, and FTX to file for bankruptcy.
Prior to his arrest in Montenegro, Kwon's whereabouts remained largely undisclosed, with speculation that the Terraform Labs co-founder resided in Singapore. While reports indicate he will initially face U.S. officials, legal experts have not ruled out the possibility that Kwon might also face charges in South Korea. Kwon denies any involvement in fraud.
