In a recent development in the ongoing legal saga, Do Kwon, the founder of Terra Luna, is reportedly slated to be extradited to the United States.
This follows a series of legal activities that has lasted for up to a year following the collapse of the Terra Luna project.
Do Kwon is a South Korean entrepreneur who co-founded Terraform Labs, the company behind the Terra blockchain protocol, TerraUSD, and the Luna cryptocurrency.
Kwon hyped the Luna and TerraUSD cryptocurrencies, which rose to a peak of $116 from less than $1 in early 2021, minting a generation of crypto millionaires.
However, in May 2022, TerraUSD and Luna collapsed, wiping out almost $45 billion in market capitalization in one week and causing hundreds of billions in losses.
Kwon faces charges of fraud and violating securities laws in the United States, South Korea, and Singapore.
He was arrested in Montenegro and is set to be extradited to the United States to stand trial for various criminal charges, including orchestrating a multibillion-dollar crypto asset securities fraud.
Despite attempts to avoid extradition, including legal appeals in late November, a top Montenegrin justice official has reportedly confirmed the plan for Do Kwon’s extradition.
The founder had been charged by the US Securities and Exchange Commission (SEC) in February for his alleged involvement in a “multibillion-dollar crypto asset securities fraud.”
Apart from the collapse of Terra Luna, the fall of FTX and its founder, Sam-Bankman Fried, is another event that has affected the crypto industry.
SBF was found guilty on seven criminal counts, including money laundering and wire fraud.
He was accused of orchestrating a fraud that involved using customer funds improperly and misleading FTX customers.
The case against him revolved around the alleged misuse of customer deposits to fund billions of dollars in loans to FTX’s sibling company.
Going into 2024, the entire crypto community awaits the final judgment that will be meted on two of the most popular founders in the industry.