The US SEC sued Terraform Labs and Kwon over the TerraUSD and Luna cryptocurrencies, alleging they misled investors. This description highlights the involvement of the US Securities and Exchange Commission in the case.
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| Do Kwon, co-founder of Terraform Labs, has been extradited to the US to face charges related to the collapse of the TerraUSD cryptocurrency. This description emphasizes the key takeaway: Kwon's extradition. Image Courtesy: The Star |
Podgorica, Montenegro - January 1, 2025:
Do Kwon, the co-founder of Terraform Labs, was extradited to the United States on Tuesday. Kwon faces charges in the US related to the collapse of the TerraUSD cryptocurrency in May 2022, which triggered significant losses in the crypto market.
Kwon, a South Korean national, was arrested in Montenegro in March 2023 while attempting to leave the country. He maintains his innocence.
The US Securities and Exchange Commission sued Kwon and Terraform Labs earlier this year, alleging they deceived investors about the stability of the TerraUSD and the functioning of its associated app.
The extradition to the US follows a ruling by the Montenegrin Supreme Court, which determined that all legal requirements for extradition were met. Kwon's lawyers had appealed this decision to the Constitutional Court.
The TerraUSD, a "stablecoin" designed to maintain a constant $1 price, suffered a dramatic collapse last year, causing an estimated $40 billion in losses for investors.