South Korean authorities are seeking the extradition of Terraform Labs co-founder and former CEO Do Kwon. Prosecutors overseeing the investigation believe his deportation would best benefit victims of the TerraUSD (USTC) and LUNA token debacle, The Wall Street Journal reported.
South Korea, where most of Kwon's alleged crimes took place, has wiped nearly $40 billion from the Terra ecosystem, according to Dan Sung-han, head of South Korean prosecutors investigating the collapse of the two cryptocurrencies. “Given the nature of the incident, we believe that investigating the case in South Korea will be the most effective way to achieve justice [for the investors],” prosecutors told the newspaper in an interview. Kwon, also a South Korean citizen, was arrested in Montenegro in March and charged with falsifying documents. US and South Korean authorities have since been working to extradite the Terra co-founder. He is also wanted by Singapore regulators.
At a news conference after Kwon's arrest, Montenegro Justice Minister Marko Kovac said the decision to extradite him would be based on "several factors", including the seriousness of the criminal offense and where and when it was committed. Montenegro reportedly has no extradition t reaty with Either Singapore or South Korea. However, it has an old extradition agreement with the US and has extradited US citizens before. In late April, South Korean officials charged Terraform Labs co-founder Shin Hyun-seong and nine others with fraud, breach of trust and embezzlement, accusing them of disrupting the Terra ecosystem.
Prosecutors Charged the Men with Illegally Making Nearly 460 Billion WON ($ 350 Million) in Profits, South Korean Daily KBS World Reported. Urnal that if kwon is expected to his home country, he Will Face Similar Charges, Which Carry A Maximumum penalty of 40 years in prison.
Terra was one of the first cryptocurrency companies to popularize the concept of an algorithmic stablecoin. When its native stablecoin, USTC, depegged from the US dollar in May 2022, the ecosystem collapsed, triggering a snowball crisis in the crypto industry l ast year.
