Do Kwon, the co-founder of Terraform Labs Pte, is reportedly in jail in Montenegro, awaiting extradition for alleged involvement in a cryptocurrency fraud that resulted in the loss of $40 billion in market value.
What Happened: The U.S. and South Korea have both charged Kwon and are requesting his extradition, stated a Bloomberg report, but Montenegro’s justice minister, Marko Kovac, says a judge will decide which country will be given first priority.
The report further states that while the U.S. and South Korea do not have extradition agreements with Montenegro, they do have other international arrangements that may facilitate Kwon’s extradition.
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However, Kwon himself may challenge the extradition. In addition, as Kwon was initially arrested in Montenegro for traveling with false documents, he may need to serve time for those charges before being extradited to the U.S. or South Korea.
The collapse of Terra in May 2022 sparked investigations by various authorities, including the Department of Justice and the Securities and Exchange Commission.
Terra’s UST stablecoin has lost its dollar peg and is now valued at $0.02. Terra Luna Classic (LUNC) has also lost most of its value since May 2022 but still maintains a market cap of around $726 million, making it the 62nd largest cryptocurrency.
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