Do Kwon Faces Extradition Request, Could Stay in Custody for 6 Months
• Do Kwon, the founder of failed blockchain project Terra, could stay in custody for up to six months while Montenegro’s courts consider an extradition request from South Korea.
• Kwon has been charged with eight counts of fraud in New York, including securities fraud, wire fraud, commodities fraud and conspiracy.
• South Korean prosecutors are targeting the cryptocurrency assets of Do Kwon worth $29 million.
South Korea Extradition Request
Do Kwon, the founder of failed blockchain project Terra, could stay in custody for up to six months while Montenegro’s courts consider an extradition request from South Korea. On Thursday, a Montenegro court extended Kwon’s stay in custody for an additional six months as he awaits trial for possible extradition, according to a report by Radio Free Europe.
Criminal Charges in US
Kwon has been charged with eight counts of fraud in New York, including securities fraud, wire fraud, commodities fraud and conspiracy. US prosecutors alleged that Kwon made a series of false and misleading statements during a TV interview about the extent to which users had adopted the Terra blockchain. The US Securities and Exchange Commission (SEC) also sued Terraform Labs and CEO Kwon for allegedly orchestrating a multibillion-dollar cryptocurrency fraud.
Cryptocurrency Assets Targeted
Last week it was reported that Korean prosecutors are targeting the cryptocurrency assets of Do Kwon worth $29 million. He allegedly funneled tens of millions of dollars out of Luna Foundation Guard (LFG), which he set up to help defend his now-defunct stablecoin TerraUSD’s peg to the dollar.
Failed Blockchain Project
Kwon had fled South Korea and Singapore prior to the company’s collapse in May last year. The commission said that Terraform and Kwon raised billions of dollars from investors during the period between 2018 to May 2022 by selling “crypto asset securities” in the form