Crypto Founder Behind $40 Billion Disaster to Be Extradited to US

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As a seasoned analyst with extensive experience in the financial sector and a keen eye for regulatory matters, I find myself following the saga of Do Kwon, the South Korean cryptocurrency entrepreneur, with a mix of intrigue and caution. The implosion of Terra network earlier this year was a stark reminder of the unpredictable nature of the crypto market and the potential risks it poses to unsuspecting investors.

As reported by Agence France Presse, it appears that Montenegro intends to hand over South Korean crypto entrepreneur Do Kwon to the United States authorities.

According to a report, Minister of Justice Bojan Bozovic approved the extradition process earlier on Friday.

In May 2022, a massive collapse occurred within the Terra network, leading to estimated losses of approximately $40 billion for investors, as reported by several reliable sources.

Later on, the SEC filed a lawsuit against Terraform Labs and its founder Kwon, alleging that they had misled investors regarding the stablecoin TerraUSD, which became notorious. Civil fraud accusations were made by the regulatory body.

A jury then found Terraform Labs and Kwon liable, siding with the SEC in April. 

In addition, legal accusations have been brought against Kwon in both the United States and his home country, South Korea. Both jurisdictions had been attempting to extradite Kwon, but Montenegro eventually determined that the US would be a more suitable choice based on most of the criteria stipulated by law.

In September, Terraform Labs obtained approval for its bankruptcy plan. 

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2024-12-27 19:40