Finally, Terra LUNA Boss Do Kwon Extradited To The US

Do Kwon, founder of the crypto project that collapsed Terra LUNA. (Photo; Doc. DLNews)

JAKARTA - After going through a long legal and diplomacy process, Terraform Labs founder, Do Kwon, will be extradited to the United States. Minister of Justice Montenegro, Bojan Bo Waylovi Badminton, has signed the extradition order, marking a major step in efforts to bring Kwon to justice over his alleged involvement in major scandals in the crypto world.

Supreme Court Montenegro has decided that both the United States and South Korea meet legal requirements to apply for Do Kwon's extradition. However, requests from the US were prioritized because they were brought up first and contained serious charges such as financial fraud and market manipulation.

Most of the legal criteria set in support of extradition requests from US authorities, the Ministry of Justice Montenegro said in its official statement.

Do Kwon Do Kwon's Extradition Preparation, which is currently being held at the Montenegro Foreign Receivable Center, is scheduled to be moved to the United States in the coming weeks. Local authorities are finalizing arrangements to ensure the delivery process runs smoothly.

This extradition is an important moment in an attempt to try Kwon for his role in the collapse of the Terra-LUNA ecosystem, which caused billions of dollars in losses to investors and major impacts in the digital asset industry.

The Terra-LUNA case and the Accusations Against Do Kwon In May 2022, the crypto world was shaken by the collapse of Terraform Labs' flagship tokens, TerraUSD (UST) and LUNA. UST, marketed as a stablecoin with a fixed exchange rate of 1:1 against the US dollar, failed to maintain its stability due to the collapsing algorithmic mechanism. This incident removed a value of about 40 billion US dollars (Rp 648 trillion) from the crypto market and triggered the bankruptcy of several digital asset companies, including Celsius.

Do Kwon and Terraform Labs face accusations of misleading investors regarding the stability of the Terra-LUNA ecosystem. Prosecutors accuse Kwon of manipulating market data and not revealing the huge risks attached to the token. In addition, he is suspected of hiding huge wealth to avoid legal responsibility.

The arrests and penalties in Montenegro After the Terra-LUNA collapse, Kwon fled, avoiding authorities in South Korea, Singapore, and other countries. In September 2022, South Korean prosecutors issued arrest warrants for Kwon, who was then suspected of being in Singapore. Interpol then issued a Red Notice to arrest him.

His escape ended in March 2023 when he and his partner, Han Cheng Jun, were arrested at Podgorica Airport, Montenegro, while trying to board a plane to Dubai on a fake passport. Kwon was sentenced to four months in prison for passport forgery, who had delayed his extradition process.

With extradition getting closer, attention is now focused on how the legal process in the US will deal with the case that has rocked the crypto world.