Do Kwon to Face U.S. Fraud Charges After Montenegrin Court Approves U.S. Extradition

Do Kwon to Face U.S. Fraud Charges After Montenegrin Court Approves U.S. Extradition

The cryptocurrency world has been closely watching the legal saga of Do Kwon, co-founder of the collapsed Terraform Labs. In a significant development, a Montenegrin court has approved the extradition of Kwon to the United States to face federal fraud charges. This decision marks a crucial step in the ongoing legal proceedings stemming from the catastrophic crash of TerraUSD and Luna, two cryptocurrencies developed by Terraform Labs in 2022. The Terraform Labs Collapse: A $40 Billion Debacle The collapse of TerraUSD and Luna sent shockwaves through the cryptocurrency market, causing investors to lose an estimated $40 billion. The stablecoin TerraUSD, designed to maintain a stable value pegged to the U.S. dollar, lost its peg, triggering a domino effect that led to the near-total devaluation of Luna. SEC Charges and Terraform's Settlement The U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Terraform Labs and Kwon, alleging that they had engaged in a fraudulent sch…