Do Kwon, co-founder of Terraform Labs, is anticipated to remain in Montenegrin custody until February, as reported. The U.S. and South Korea have requested an extension of two months for Kwon’s detention following the completion of his prison term in Montenegro. Kwon, who was detained in March for using forged travel documents, received a four-month sentence.
Kwon, originally from South Korea and previously residing in Singapore, faces charges in both the U.S. and South Korea regarding Terra’s collapse. The Wall Street Journal indicated the U.S. would assume custody before South Korea, with pending extradition requests from both nations.
In the event of extradition to the U.S., Kwon confronts eight criminal charges linked to his tenure at Terraform Labs, encompassing commodities fraud, securities fraud, wire fraud, and conspiracy to defraud and manipulate markets. Additionally, the U.S. Securities and Exchange Commission has accused Kwon of deceiving investors through crypto schemes.
The collapse of Terra in May 2022 triggered a significant downturn in the crypto market. TerraUSD (UST) ceased to maintain its peg to the U.S. dollar, leading to bankruptcy filings by various firms such as Voyager Digital, BlockFi, Celsius Network, and FTX.
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