The co-founder of the Terra (LUNA) ecosystem, Do Kwon, is set to appear in a US court today after being extradited from Montenegro. Kwon is facing fraud charges in the US related to the downfall of Terra in 2022.
Kwon was arrested in March of 2023 in Montenegro after attempting to board a flight to the United Arab Emirates with a fake Costa Rican passport. He had been evading authorities since the crash of Terra and its associated assets, TerraUSD and LUNA.
TerraUSD was designed as an algorithmic stablecoin to maintain its price pegged to $1 by minting more LUNA if needed. However, the mechanism failed, leading to highly inflated supplies of both assets and causing their prices to plummet.
After his arrest, both the United States and South Korea sought Kwon’s extradition to face criminal charges. Last month, the highest court in Montenegro ruled in favor of extraditing Kwon to the US, rejecting South Korea’s request. Kwon’s appeal was also turned down, meeting all criteria for extradition to the US.
Kwon is charged with multiple counts of securities fraud, wire fraud, commodities fraud, and conspiracy. He is scheduled to appear in a New York federal court, facing the possibility of decades behind bars if convicted on all counts.
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