Former Terraform Labs CEO Do Kwon Faces Extradition Over Alleged Crypto Fraud

Do Kwon's legal battle intensifies amid extradition approvals and document forgery conviction.

Do Kwon, the former CEO of Terraform Labs, the parent company of Terra (LUNA), is on the brink of potential extradition following accusations of involvement in a significant crypto fraud case. The US Securities and Exchange Commission (SEC) had leveled charges against Terraform Labs and Kwon, alleging a multi-billion dollar fraudulent scheme centered around an algorithmic stablecoin and other securities.

The SEC's claims suggest that Terra and Kwon presented cryptocurrencies as securities to investors, painting the entire Terra ecosystem as a complex scam orchestrated by multiple collaborators. Kwon specifically faces charges primarily related to securities fraud, conducting unregistered securities offerings, and other violations. Additionally, the SEC accuses him of cashing out over 10,000 Bitcoin (BTC) from Terra.

Initially arrested in March while attempting to enter Montenegro using falsified documents, Kwon served a four-month jail sentence. Recently, the court in Podgorica, Montenegro's capital, has approved his extradition to either South Korea or the United States, marking a pivotal development in this legal saga.

As per the latest update on the judiciary’s website dated November 24, the decision regarding Kwon's extradition will ultimately be in the hands of the Montenegrin Justice Minister. This decision comes after the Montenegro High Court affirmed the four-month prison sentence for Kwon and his associate Han Chang-Joon for document forgery, dismissing their appeal and solidifying the potential extradition.

The ongoing legal proceedings have intensified, signaling a crucial juncture as Kwon faces the looming possibility of extradition, leaving the final decision in the hands of Montenegro's judicial authorities.