Do Kwon, co-founder of Terraform Labs, is being extradited from Montenegro to the US to face fraud charges following the $40bn collapse of the TerraUSD stablecoin in 2022. This decision resolves a dispute between US and South Korea over extradition requests.
Despite earlier indications that Kwon might be sent to South Korea, Montenegro's Justice Ministry favored the US based on legal criteria such as offense gravity and place of execution. Kwon was arrested in March 2023 for trying to leave Montenegro using fake passports.
Accusations include misleading investors and hiding assets post-TerraUSD's downfall, causing financial upheavals in the crypto world. Comparisons are drawn with FTX founder Sam Bankman-Fried, who faced similar charges and extradition woes.
The saga doesn't end here, with hints of Kwon's alleged political connections in Montenegro stoking further controversy. The financial impact of the collapse is still felt, with Terraform Labs settling with the SEC for hefty penalties.
