Do Kwon will be extradited to the US to face charges over Terra’s $40 billion crypto crash

Do Kwon, the co-founder of the collapsed cryptocurrency firm Terraform Labs, will be extradited to the US to face federal fraud charges, as reported earlier by Bloomberg. The Montenegro Ministry of Justice announced the decision on Friday, which comes more than one year after the authorities arrested Kwon in the country.

Kwon faces charges in the US and South Korea after the TerraUSD stablecoin and its sister token Luna crashed in 2022, causing investors to lose $40 billion in the process. Both countries have issued extradition requests for Kwon, and have been awaiting Montenegro’s decision for months.

“It was concluded that most of the criteria provided for by law support the extradition request of the competent authorities of the United States of America,” a machine-translated version of Montenegro’s Ministry of Justice’s statement said. It doesn’t say when Montenegro plans on releasing Kwon to the US. As noted by Bloomberg, it’s also unclear whether this decision is final, since Montenegro ruled to extradite Kwon to South Korea in August.

Federal prosecutors in New York charged Kwon with wire fraud, commodities fraud, securities fraud, and conspiracy to defraud and engage in market manipulation last year. In June, Terraform Labs and Kwon agreed to pay more than $4.5 billion to settle a separate lawsuit from the Securities and Exchange Commission.