Terraform Lab's crypto scammer Do Kwon extradited to US

Do Kwon, the suspected mastermind behind a $40 billion crypto scam involving Terraform Labs, was extradited to the US on Tuesday according to authorities in Montenegro.

Kwon, co-founder and former CEO of the blockchain platform Terraform Labs, had been held in Montegengo custody since his arrest in the Balkan nation last March – after spending months on the run from international police.

He is accused of causing the collapse of the Terraform platform in May 2022 by deceiving investors about the stability of two cryptocurrencies developed by Kwon – TerraUSD and the Luna token.

Kwon, who had fled his home country of South Korea just before the collapse, was handed over to FBI agents at Podgorica airport, located in the nation’s same-name capital city, according to a statement by Montenegro's Interior Ministry.

A Montenegrin Justice Minister ordered Kwon's extradition to the US last week after its Supreme Court ruled that all legal conditions had been satisfied, making the US extradition request favorable.

Kwon’s lawyers had filed an appeal, which was ultimately denied by the Justice Ministry.

Before his 2023 arrest – ironically trying to flee authorities via the same Podgorica airport using forged documents – Kwon was wanted by South Korea, the United States, Singapore, and Interpol.

TerraUSD was developed as a "stablecoin" designed to maintain a constant $1 price. The collapse of TerraUSD and Luna coin was said to have caused about $40 billion of losses in crypto markets.

The cryptocurrency king faces charges of financial fraud, tax evasion, and violating the South Korean capital market. Kwon has consistently denied any wrongdoing.

The US Securities and Exchange Commission (SEC) filed suit against Kwon and his blockchain platform in February 2023 for defrauding investors. A federal jury found him guilty that April.