On Thursday, Do Kwon, the founder of Terraform Labs, was arrested in Montenegro while attempting to board a flight with false documents, following months of hiding to evade charges. Kwon is the creator of the TerraUSD stablecoin and LUNA token. The U.S. prosecutors charged Kwon with eight criminal indictments, including securities fraud and conspiracy, and Interpol confirmed his identity as the crypto fugitive wanted in South Korea and the U.S. on fraud charges.
The question now is which country Kwon will be sent to, as he faces criminal charges in both the U.S. and South Korea. The U.S. federal prosecutors are reportedly seeking Kwon’s extradition to New York, while South Korea is also pursuing his extradition. The South Korean prosecutors are discussing with “related parties” about extraditing Kwon as soon as possible, but the identity of the parties and the country to which he would be extradited is unknown.
Kwon is facing multiple criminal proceedings. Since the collapse of Terra/LUNA in May 2022, a South Korean court has issued an arrest warrant against him, and Interpol issued a red notice in September to capture him. In October, South Korean prosecutors requested the local foreign affairs ministry to nullify Kwon’s passport unless he returned by September 15. Kwon registered his address in Serbia in December, and his location was unknown until his arrest in Montenegro.
The U.S. Securities and Exchange Commission (SEC) recently charged Terraform Labs and Kwon with defrauding U.S. investors who purchased its crypto assets, Terra and LUNA. As the legal proceedings continue, the fate of Kwon and the future of Terraform Labs remain uncertain.
