Terraform Labs co-founder Do Kwon extradited to US by Montenegro

Do Kwon faces US charges for allegedly misleading investors about TerraUSD’s stability.

Montenegro extradited Terraform Labs co-founder Do Kwon to the US over allegations of cryptocurrency fraud.

Montenegro has extradited Terraform Labs co-founder Do Kwon to the US, where he faces charges related to investor deception and the collapse of the TerraUSD cryptocurrency. The Montenegrin interior ministry confirmed Kwon was handed over to US law enforcement at Podgorica airport.

Kwon, a South Korean national, was arrested in March 2023 while attempting to leave Montenegro. The Supreme Court recently ruled that legal conditions for extradition were met, prompting Justice Minister Bojan Bozovic to approve the US request. His legal team has appealed the decision at Montenegro’s Constitutional Court.

The former CEO of Terraform Labs is accused of misleading investors about TerraUSD’s stability. The cryptocurrency collapsed in May 2022, triggering an estimated $40 billion in market losses. Kwon and his company are also being sued by the US Securities and Exchange Commission over allegations of fraud involving TerraUSD and Luna.

Stablecoins are digital assets designed to maintain a fixed value, typically pegged to a fiat currency. TerraUSD’s failure undermined trust in their stability and shook the broader cryptocurrency market.