South Korean cryptocurrency specialist Do Kwon will be extradited to the United States, Montenegro said on Friday (Dec 27). He is the primary accused in the collapse of two digital tokens - TerraUSD and Luna. Do Kwon is also wanted by Seoul for the multi-billion-dollar bankruptcy of his company, Terraform Labs.
Both US and South Korea have been seeking Kwon's extradition for months. He is accused of committing fraud leading to the failure of the company behind the tokens that caused the loss of around $40 billion of investor money. His fall also jolted the crypto market.
The decision brings to an end an over 18-month-long court battle as Montenegro does not have extradition treaties with the US or South Korea.
The court said that Kwon "personally consented to expedited extradition to both the Republic of South Korea and the United States".
But Do Kwon's lawyers say that the decision goes against European conventions on extradition. They are planning to appeal to the country's constitutional court and to the European Court of Human Rights.
Also Read: <a href="https://www.wionews.com/business-economy/north-korean-cyber-actors-were-behind-the-308-million-cryptocurrency-heist-says-us-and-japan-786407" rel="dofollow">North Korean cyber actors behind $308 million cryptocurrency heist, say US and Japan</a>
The justice ministry said that Justice Minister Bojan Bozovic "issued a decision approving the extradition of the accused, Kwon Do Hyung, to the United States of America."
"It was concluded that the majority of the criteria prescribed by law favour the extradition request from the competent authorities of the United States of America," the statement said.
Do Kwon was on the run for months before he was arrested in March 2023 at the airport in Montenegrin capital Podgorica while trying to board a flight to Dubai. He was found in possession of a fake Costa Rican passport.
He first fled to South Korea and later to Singapore before his business crashed and his company went bankrupt in 2022. He fled to Serbia before being picked up in Montenegro.
<h2>Who is Do Kwon and what did he do?</h2>
 Do Kwon's company Terraform Labs created a cryptocurrency called TerraUSD. It was marketed as a "stablecoin", a token looked at as one that can stabilise assets such as the US dollar to prevent drastic fluctuations.
He was able to successfully market the cryptocurrency as the next big thing in the crypto world and attracted billions in investments and global hype. South Korean media called him a "genius".
However, TerraUSD and its sister token Luna went downwards in May 2022. According to experts, it was a glorified Ponzi scheme that led to several people losing their life savings.
In January, Terraform Labs filed for bankruptcy protection in the United States. This would mean that Terraform could "execute on its business plan while navigating ongoing legal proceedings, including representative litigation pending in Singapore and US litigation involving the Securities and Exchange Commission", as per a company statement.
It said it also intended to "meet all financial obligations to employees and vendors". (With inputs from agencies)

Do Kwon was on the run for months before being arrested in 2023 while trying to board a flight to Dubai. Both US and South Korea have been seeking Kwon's extradition for months. 

South Korean cryptocurrency specialist Do Kwon will be extradited to the United States, Montenegro said on Friday (Dec 27). He is the primary accused in the collapse of two digital tokens - TerraUSD and Luna. Do Kwon is also wanted by Seoul for the multi-billion-dollar bankruptcy of his company, Terraform Labs. Both US and South Korea have been seeking Kwon's extradition for months. He is accused of committing fraud leading to the failure of the company behind the tokens that caused the loss of around $40 billion of investor money. His fall also jolted the crypto market. The decision brings to an end an over 18-month-long court battle as Montenegro does not have extradition treaties with the US or South Korea. The court said that Kwon "personally consented to expedited extradition to both the Republic of South Korea and the United States". But Do Kwon's lawyers say that the decision goes against European conventions on extradition. They are planning to appeal to the country's constitutional court and to the European Court of Human Rights. Also Read: North Korean cyber actors behind $308 million cryptocurrency heist, say US and Japan The justice ministry said that Justice Minister Bojan Bozovic "issued a decision approving the extradition of the accused, Kwon Do Hyung, to the United States of America." "It was concluded that the majority of the criteria prescribed by law favour the extradition request from the competent authorities of the United States of America," the statement said. Do Kwon was on the run for months before he was arrested in March 2023 at the airport in Montenegrin capital Podgorica while trying to board a flight to Dubai. He was found in possession of a fake Costa Rican passport. He first fled to South Korea and later to Singapore before his business crashed and his company went bankrupt in 2022. He fled to Serbia before being picked up in Montenegro. Who is Do Kwon and what did he do? Do Kwon's company Terraform Labs created a cryptocurrency called TerraUSD. It was marketed as a "stablecoin", a token looked at as one that can stabilise assets such as the US dollar to prevent drastic fluctuations. He was able to successfully market the cryptocurrency as the next big thing in the crypto world and attracted billions in investments and global hype. South Korean media called him a "genius". However, TerraUSD and its sister token Luna went downwards in May 2022. According to experts, it was a glorified Ponzi scheme that led to several people losing their life savings. In January, Terraform Labs filed for bankruptcy protection in the United States. This would mean that Terraform could "execute on its business plan while navigating ongoing legal proceedings, including representative litigation pending in Singapore and US litigation involving the Securities and Exchange Commission", as per a company statement. It said it also intended to "meet all financial obligations to employees and vendors". (With inputs from agencies)

Who is South Korean cryptocurrency 'genius' Do Kwon? Details of his crimes amid US extradition move

Fugitive cryptocurrency entrepreneur Do Kwon has been found guilty of possessing forged documents by a Montenegro court. Kwon, the founder of Terraform, was arrested at an airport in Montenegro with fake passports. He is still awaiting trial for another charge related to his possible extradition.&nbsp;

<h2>Fake passport and prison sentence</h2>

As per AFP, in a statement, the court said that Kwon and his travel companion were "guilty because they used a fake passport" from Costa Rica at the airport. Additionally, the court revealed that the duo had Belgium passports under different names in their possession.

Kwon has been sentenced to four months in prison, and his attorney stated that there were no immediate plans to appeal the ruling.

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/south-korean-crypto-founder-arrested-in-montenegro-575327">Do Kwon: Fugitive S Korean behind $40bn crypto collapse arrested in Montenegro</a>

This verdict follows a recent decision by the court to extend their custody for six months for the extradition charge.&nbsp;

Both Seoul and Washington are seeking Kwon's extradition due to his alleged involvement in fraud that led to his company's collapse, wiping out about $40 billion of investors' money and causing turbulence in global crypto markets.

However, Montenegro does not have extradition treaties with the US or South Korea, complicating the process of bringing Kwon to justice in those countries.

<h2>On the run</h2>

Kwon, whose real name is Kwon Do-hyung, had been on the run for several months after fleeing South Korea and Singapore before his company's crash in May the previous year.&nbsp;

South Korean prosecutors had requested Interpol to issue a red notice for Kwon's arrest, and his passport was revoked.

<h2>Kwon and Montenegro</h2>

Since his arrest in Montenegro, Kwon has become a subject of intrigue in the country's politically divided landscape.&nbsp;

AFP reports that during the lead-up to parliamentary elections, controversy arose when interim Prime Minister Dritan Abazovic and his allies accused Milojko Spajic, the leader of Europe Now, of having connections with Kwon.&nbsp;

Political analysts speculate that these allegations may have affected political party Europe Now's performance in the polls, as they secured around a quarter of the votes and are currently working on forming a coalition.

<h2>'Stablecoin' TerraUSD&nbsp;</h2>

Kwon's TerraUSD was promoted as a "stablecoin," typically pegged to stable assets like the US dollar to minimise price fluctuations.&nbsp;

In recent days, cryptocurrencies have faced increased scrutiny from regulators due to controversies, including the collapse of the FTX exchange.&nbsp;

Also read |&nbsp;<a data-ctorig="https://www.wionews.com/world/us-charges-wanted-crypto-entrepreneur-do-kwon-with-fraud-563213" data-cturl="https://www.google.com/url?client=internal-element-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/us-charges-wanted-crypto-entrepreneur-do-kwon-with-fraud-563213&amp;sa=U&amp;ved=2ahUKEwih_JaXhtH_AhXAyqACHYgiCOc4ChAWegQICBAC&amp;usg=AOvVaw3g_pZYtPuolGqxivQy1UZ0" dir="ltr" href="https://www.wionews.com/world/us-charges-wanted-crypto-entrepreneur-do-kwon-with-fraud-563213" target="_blank">US charges wanted crypto entrepreneur&nbsp;Do Kwon&nbsp;with fraud</a>

Additionally, the digital currency sector has also been impacted by the failures of US crypto lenders Silvergate and Signature, which contributed to banking concerns earlier this year and caused disruption in global markets.

Fugitive cryptocurrency entrepreneur Do Kwon has been found guilty of possessing forged documents by a Montenegro court. Kwon, the founder of Terraform, was arrested at an airport in Montenegro with fake passports.

Fugitive cryptocurrency entrepreneur Do Kwon has been found guilty of possessing forged documents by a Montenegro court. Kwon, the founder of Terraform, was arrested at an airport in Montenegro with fake passports. He is still awaiting trial for another charge related to his possible extradition. Fake passport and prison sentence As per AFP, in a statement, the court said that Kwon and his travel companion were "guilty because they used a fake passport" from Costa Rica at the airport. Additionally, the court revealed that the duo had Belgium passports under different names in their possession. Kwon has been sentenced to four months in prison, and his attorney stated that there were no immediate plans to appeal the ruling. Also read | Do Kwon: Fugitive S Korean behind $40bn crypto collapse arrested in Montenegro This verdict follows a recent decision by the court to extend their custody for six months for the extradition charge. Both Seoul and Washington are seeking Kwon's extradition due to his alleged involvement in fraud that led to his company's collapse, wiping out about $40 billion of investors' money and causing turbulence in global crypto markets. However, Montenegro does not have extradition treaties with the US or South Korea, complicating the process of bringing Kwon to justice in those countries. On the run Kwon, whose real name is Kwon Do-hyung, had been on the run for several months after fleeing South Korea and Singapore before his company's crash in May the previous year. South Korean prosecutors had requested Interpol to issue a red notice for Kwon's arrest, and his passport was revoked. Kwon and Montenegro Since his arrest in Montenegro, Kwon has become a subject of intrigue in the country's politically divided landscape. AFP reports that during the lead-up to parliamentary elections, controversy arose when interim Prime Minister Dritan Abazovic and his allies accused Milojko Spajic, the leader of Europe Now, of having connections with Kwon. Political analysts speculate that these allegations may have affected political party Europe Now's performance in the polls, as they secured around a quarter of the votes and are currently working on forming a coalition. 'Stablecoin' TerraUSD Kwon's TerraUSD was promoted as a "stablecoin," typically pegged to stable assets like the US dollar to minimise price fluctuations. In recent days, cryptocurrencies have faced increased scrutiny from regulators due to controversies, including the collapse of the FTX exchange. Also read | US charges wanted crypto entrepreneur Do Kwon with fraud Additionally, the digital currency sector has also been impacted by the failures of US crypto lenders Silvergate and Signature, which contributed to banking concerns earlier this year and caused disruption in global markets.

Terraform founder, 'crypto fugitive' Do Kwon found guilty of forgery by Montenegro court

USA's Security and Exchange Commission said on Thursday (February 17) that it had charged crypto entrepreneur Do Kwon and his firm Terraform Labs, "with orchestrating a multi-billion dollar crypto asset securities fraud."

The collapse of Terraform Labs last year wiped out about $40 billion of investors' money and shook global crypto markets.

South Korean prosecutors previously asked Interpol to issue a red notice for Kwon, saying he refused to cooperate with their probe into the crash.

On Thursday, the SEC alleged that from 2018 to 2022, Terraform and Kwon "raised billions of dollars from investors by offering and selling an inter-connected suite of crypto asset securities, many in unregistered transactions."

This included TerraUSD, a stablecoin said to maintain its peg to the US dollar by being interchangeable for another of the defendants' crypto asset securities, Luna.

The SEC complaint also said that Terraform and Kwon "repeatedly misled and deceived investors" that a popular Korean mobile payment app had used the Terra blockchain to settle transactions that would accrue value to Luna, according to a statement.

"As alleged in our complaint, the Terraform ecosystem was neither decentralized, nor finance," said Gurbir Grewal, director of the SEC's enforcement division.

"It was simply a fraud propped up by a so-called algorithmic 'stablecoin' -- the price of which was controlled by the defendants, not any code," he added.

Kwon's Terra/Luna system disintegrated in May last year, with the price of both tokens plummeting to near zero. The fallout hit the wider crypto market.&nbsp;

(With inputs from agencies)

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USA's Security and Exchange Commission said on Thursday (February 17) that it had charged crypto entrepreneur Do Kwon and his firm Terraform Labs, "with orchestrating a multi-billion dollar crypto asset securities fraud.

USA's Security and Exchange Commission said on Thursday (February 17) that it had charged crypto entrepreneur Do Kwon and his firm Terraform Labs, "with orchestrating a multi-billion dollar crypto asset securities fraud." The collapse of Terraform Labs last year wiped out about $40 billion of investors' money and shook global crypto markets. South Korean prosecutors previously asked Interpol to issue a red notice for Kwon, saying he refused to cooperate with their probe into the crash. On Thursday, the SEC alleged that from 2018 to 2022, Terraform and Kwon "raised billions of dollars from investors by offering and selling an inter-connected suite of crypto asset securities, many in unregistered transactions." This included TerraUSD, a stablecoin said to maintain its peg to the US dollar by being interchangeable for another of the defendants' crypto asset securities, Luna. The SEC complaint also said that Terraform and Kwon "repeatedly misled and deceived investors" that a popular Korean mobile payment app had used the Terra blockchain to settle transactions that would accrue value to Luna, according to a statement. "As alleged in our complaint, the Terraform ecosystem was neither decentralized, nor finance," said Gurbir Grewal, director of the SEC's enforcement division. "It was simply a fraud propped up by a so-called algorithmic 'stablecoin' -- the price of which was controlled by the defendants, not any code," he added. Kwon's Terra/Luna system disintegrated in May last year, with the price of both tokens plummeting to near zero. The fallout hit the wider crypto market. (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

US charges wanted crypto entrepreneur Do Kwon with fraud

According to an investigation conducted by a South Korean intelligence department, Terra co-founder Do Kwon is now in Serbia. Watch full video to know more.

Crypto fugitive Do Kwon is in Serbia, says South Korean intelligence department

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Who is South Korean cryptocurrency 'genius' Do Kwon? Details of his crimes amid US extradition move

Terraform founder, 'crypto fugitive' Do Kwon found guilty of forgery by Montenegro court

US charges wanted crypto entrepreneur Do Kwon with fraud

Crypto fugitive Do Kwon is in Serbia, says South Korean intelligence department