Terra Co-founder Do Kwon Will Stay in Montenegro Until February – Do Kwon, co-founder of Terraform Labs, slated for extradition to the United States on criminal charges, is set to remain in Montenegrin custody until February. Having already served a prison term in Montenegro for utilizing forged travel documents, he has been awaiting extradition to either the U.S. or South Korea.
As per a Bloomberg report on December 12, officials from the U.S. and South Korea have asked Montenegrin authorities to extend Kwon’s detention by two months after he completes his prison term. The co-founder of Terraform Labs was apprehended in March in Montenegro for the use of forged travel documents and received a four-month prison sentence.
A South Korean citizen who previously resided in Singapore, Kwon faces charges in both the U.S. and South Korea for his purported involvement in the Terra collapse. On December 7, The Wall Street Journal indicated that the U.S. would secure custody of Kwon before South Korea, with extradition requests from both nations pending at the time of the report.
In the event of extradition to the United States, Kwon would confront eight criminal charges, encompassing commodities fraud, securities fraud, wire fraud, and conspiracy to defraud and engage in market manipulation during his tenure at Terraform Labs. Additionally, the U.S. Securities and Exchange Commission has accused Kwon of “defrauding investors in crypto schemes.”
In May 2022, the collapse of Terra was widely regarded as a major event, initiating a downturn in the crypto market. TerraUSD (UST) became unpegged from the U.S. dollar, leading to subsequent bankruptcies of several companies, including Voyager Digital, BlockFi, Celsius Network, and FTX.