Terraform Labs co-founder Do Kwon will reportedly be extradited to america relatively than South Korea to face prison prices.
In keeping with a Dec. 7 Wall Road Journal report citing individuals aware of the matter, Justice Minister Andrej Milović in Montenegro plans to grant U.S. officers’ request for extradition. Kwon was arrested in Montenegro in March and sentenced to 4 months in jail for utilizing falsified journey paperwork. He has additionally been charged within the U.S. and South Korea for his alleged function within the collapse of Terraform Labs.
Milović reportedly stated the announcement could be made public “in a well timed method.” If extradited to the U.S., Kwon faces eight prices, together with commodities fraud, securities fraud, wire fraud and conspiracy to defraud and interact in market manipulation associated to his time at Terra. The U.S. Securities and Trade Fee additionally charged Kwon with “defrauding traders in crypto schemes” in February.
Associated: Jury in Terraform Labs case shouldn’t determine whether or not crypto is a safety — SEC
The collapse of Terraform Labs in Might 2022 was one of many main occasions kicking off a cryptocurrency market downturn. TerraUSD (UST) depegged from the U.S. greenback, and plenty of corporations filed for chapter, together with Voyager Digital, BlockFi, Celsius Community and FTX.
Earlier than his arrest in Montenegro, Kwon’s whereabouts had been largely unknown, with many speculating the Terraform Labs co-founder had been based mostly in Singapore. Although he’ll reportedly face officers in america first, some authorized consultants haven’t dominated out that Kwon may nonetheless be charged in South Korea as properly. He has denied committing fraud.
Journal: Terra collapsed as a result of it used hubris for collateral — Knifefight
