South Korean cryptocurrency tycoon and fugitive Do Kwon has been extradited to the United States after fleeing in late 2022. cryptocurrency Both TerraUSD and Luna crashed in 2022.
Shortly after the crash, Do Kwon fled South Korea after a warrant was issued for his arrest, eventually settling in Montenegro. He has been campaigning against extradition since he was arrested there in March 2023 after trying to board a flight to Dubai: Montenegro has no extradition treaty with either South Korea or the United States.
But in December 2024, the Montenegrin Ministry of Justice approved his extradition to the United States, and the Supreme Court ruled that all conditions had been met, claiming that Daoquan himself agreed. The former cryptocurrency king was handed over to the FBI at Podgorica Airport, the Montenegrin Interior Ministry added in a statement.
Do Kwon will face charges of deceiving investors about the stability of the TerraUSD cryptocurrency — a so-called stablecoin designed to maintain its value relative to a real-world asset, in this case the U.S. dollar — and how the app was used. Blockchain. The U.S. said Kwon was behind the failure of both assets and was guilty of “masterminding a multi-billion dollar crypto-asset securities fraud.” The charges include conspiracy to commit fraud, commodities fraud, securities fraud and wire fraud.
Kwon has so far denied any wrongdoing, but his plea may change now that he has entered the U.S. justice system.
Do Kwon is both the owner and public face of TerraUSD and the self-proclaimed “madman” driving the Luna cryptocurrency. In May 2022, the collapse of both companies caused their value to fall to near zero, with Terraform Labs losing more than 99% of its value in 48 hours, triggering wider panic and causing the crypto market to lose approximately $40 billion. This was believed to be a major factor behind the wider cryptocurrency disaster that year, which became so severe that it even led to the creation of poster boys for the cryptocurrency industry, including Bitcoin and Ethereum. Many smaller cryptocurrency companies went bankrupt as well as giants like FTX (The company’s founder, Sam Bankman-Fried, has been with the company for 25 years).
After fleeing to Montenegro, Do-kwon tried to argue that he should be extradited to South Korea (where he is from Seoul) rather than being sent to the United States. But he may not have endeared himself to the Montenegrin authorities by arriving on a false passport and then trying to leave with one.
Terraform Labs unsuccessfully fought the U.S. indictment before filing for bankruptcy in the U.S. in January 2024. as part of a $4.55 billion settlement agreement with the Exchange Commission.
Do Kwon will soon appear before U.S. Magistrate Judge Robert Lehrburger in Manhattan federal court. This is a far cry from his heyday in 2021, when the King of Mad Men could do no wrong. Do-Kwon has always been outspoken, even trying to be shameless when everything around him starts to fall apart. In his last interview to date, he philosophized about the prospect of prison: “Life is long.” Yes, if you’re lucky. But when you’re carrying a pot like this, jail time can also be lengthy.