Montenegro’s High Court just decided that the founder of the failed Terra crypto blockchain Do Kwon will be extradited to the US, where he is being prosecuted for crypto fraud, a local news outlet reported on Wednesday.
Do Kwon Extradited: Terra Founder Faces Fraud Charges in US
Kwon faces eight charges from US prosecutors over his involvement in the May 2022 collapse of the Terra ecosystem that cost investors billions.
He was arrested in March 2023 at Montenegro’s Podgorica Airport over the possession of a fake Costa Rican passport.
The extradition process was complicated by competing requests from both the US and Kwon’s home country, South Korea.
SBF going to have a buddy to swap stories about the old days soon?
Montenegro sending Do Kwon to the US pic.twitter.com/DncYTJ7Pqy
— Novacula Occami (@OccamiCrypto) February 21, 2024
The US Securities and Exchange Commission (SEC) recently secured a trial delay against Kwon and Terraform Labs to accommodate the extradition process. This civil case accuses Kwon and Terraform Labs of perpetrating a $40 billion crypto fraud, primarily related to misleading investors about the stability of Terra’s algorithmic stablecoin UST.
The trial is now scheduled to begin on March 25th.
Luna Price Reaction to the Extradition News
The extradition news sparked immediate volatility within the market. Luna, the native token of the Terra blockchain, experienced a sharp 12% decline before recovering slightly. Market analysts attribute this price fluctuation to investor uncertainty surrounding Kwon’s legal proceedings and the potential impact on Terra’s future.
While some investors may perceive the extradition as a step towards accountability, others fear that extended legal battles could further destabilize the Terra ecosystem. Luna currently trades at $0.6645, and its price trajectory stays highly dependent on the outcome of Do Kwon’s trial.