PODGORICA (Reuters) -Montenegro on Tuesday extradited Terraform Labs co-founder Do Kwon to the US, the place he faces fees of getting deceived traders concerning the stability of the TerraUSD cryptocurrency and the way an app used the Terraform blockchain.
Kwon was handed over to U.S. regulation enforcement officers and brokers of the Federal Bureau of Investigation (FBI) at Podgorica airport, Montenegro’s inside ministry stated in a press release.
Kwon denies wrongdoing.
The South Korean nationwide is the previous CEO of South Korea-based Terraform Labs, the corporate behind the TerraUSD, a “stablecoin” designed to take care of a continuing $1 worth, which collapsed in Could 2022, roiling cryptocurrency markets.
Kwon, who was arrested in March 2023 whereas trying to depart Montenegro, can be wished by South Korea.
Final week, Montenegrin Justice Minister Bojan Bozovic ordered Kwon’s extradition to the US after the Supreme Court docket dominated all authorized situations have been fulfilled.
The Justice Ministry stated it had concluded that the majority authorized standards favoured the U.S.’s request for extradition. His legal professionals stated that they had appealed in opposition to Bozovic’s determination on the Constitutional Court docket.
Kwon and his firm Terraform Labs have been sued by the U.S. Securities and Change Fee in February 2023 over the TerraUSD and Luna cryptocurrencies, which authorities have stated triggered about $40 billion of losses in crypto markets.
A stablecoin is a digital asset that goals to maintain a secure worth. Normally pegged to a foreign money, they’re meant to be much less risky than different cryptocurrencies.
