• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M
Founder of Terraform Labs faces extradition drama

Founder of Terraform Labs faces extradition drama

user avatar

by Liza Tanasova

2 years ago


The founder of Terraform Labs, Do Kwon, may find himself extradited to the U.S. from South Korea in connection with the collapse of a multi-billion-dollar ecosystem involving LUNA and UST. Sources familiar with the matter suggest that Do Kwon, the creator of the Terra blockchain, could face criminal prosecution in the U.S. as early as 2024. The decision rests with Montenegro's Minister for Justice, Andrej Milovic, who has communicated plans to surrender Kwon to American authorities, reportedly informing the U.S. ambassador as well.

The complex legal situation stems from a conflict between South Korea and the U.S., both seeking to prosecute Kwon, a former crypto billionaire turned fugitive, for fraud and securities-related violations. In South Korea, prosecutors accuse Kwon of breaking the Capital Markets Acts, an offense that could lead to a prison sentence of up to 40 years. Meanwhile, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Kwon, alleging the offering of unregistered securities in TerraLuna and the use of misleading marketing material to promote TerraUSD, an algorithmic stablecoin whose collapse contributed to the broader failure of Terra's ecosystem in the summer of 2022.

The legal battle involves Kwon's attempts to dismiss the case, countered by SEC prosecutors seeking a summary judgment. The founder had been held in a Balkan nation since March 2023, following his arrest at a Podgorica airport with a falsified Costa Rican passport.

The news of Kwon's potential extradition comes on the heels of his appeal to a court ruling approving his transfer out of Montenegro. Previous attempts to overturn his four-month prison sentence were unsuccessful, adding further complexity to the legal proceedings surrounding the high-profile figure in the crypto space. The situation underscores the international dimension and regulatory challenges associated with cryptocurrency-related legal matters, as governments grapple with jurisdictional issues and the evolving nature of the crypto landscape.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

Other news

Stablecoins and Their Impact on the Future of Finance — Insights from the Federal Reserve

chest

Recent remarks by Alberto Musalem on stablecoins highlight their potential to transform digital payments.

user avatarGiorgi Kostiuk

League of Kingdoms Token Swap to Arena-Z Starts on Binance

chest

Binance announces the LOKA to A2Z token swap starting on July 30, ensuring a smooth transition with minimal market disruption.

user avatarGiorgi Kostiuk

Lightchain AI vs Polygon: Who Will Lead the Future of Blockchain Industry?

chest

An analysis of the competition between Lightchain AI and Polygon including investment outcomes and overcoming challenges.

user avatarGiorgi Kostiuk

Max Keiser's Bitcoin Forecast: $220,000 by 2025

chest

Max Keiser predicts Bitcoin will reach $220,000 by 2025, citing supply constraints as a key factor.

user avatarGiorgi Kostiuk

Analysis of Sui Tokens' Possible Rise to $3.89

chest

Sui tokens show signs of a potential breakout with a target of $3.89, which may influence the cryptocurrency market.

user avatarGiorgi Kostiuk

Hainan Huatie Yellow Bee Invests in XMeta Platform

chest

Hainan Huatie Yellow Bee has announced a strategic investment in XMeta, strengthening fintech infrastructure under trade initiatives.

user avatarGiorgi Kostiuk
dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.