Terraforms Labs CEO Do Kwon spent the last day of 2024 being extradited to the US. Reuters information. Kwon faces charges in the US for “orchestrating a multi-million-dollar cryptoasset securities fraud involving an algorithmic stablecoin and other cryptoasset securities.” The Terraforms co-founder has been detained in Montenegro since March 2023, when he attempted to board a flight with a fake passport, six months after Interpol issued a “red notice” arrest warrant.
South Korea-based Terraforms Labs wiped $40 billion off the cryptocurrency market when its TerraUSD and Luna stablecoins turned out to be not so stable and collapsed in May 2022. Kwon had already fled South Korea the month before. .
The United States announced its accusations in February 2023, with the SEC Chairman Gary Gensler says“We allege that Terraform and Do Kwon failed to provide the public with full, fair and truthful disclosure as required for a number of cryptoasset securities, particularly for Luna and TerraUSD. We also allege that they committed fraud by repeating false information and misleading statements to generate confidence before causing devastating losses for investors. South Korea has issued similar accusations.
Montenegro does not have extradition treaties with the United States or South Korea. The request played out in the courts over the past year and a half, and Montenegro's Justice Minister Bojan Bozovic ordered Kwon's extradition last week. Terraform Labs filed for Chapter 11 bankruptcy protection in the US last January.
