Terraform Labs founder Do Kwon faces US extradition: WSJ

Montenegro plans to extradite Do Kwon to the US over South Korea, the Wall Street Journal reports

article-image

Terraform Labs and DansFi/Shutterstock modified by Blockworks

share

Former Terraform Labs CEO Do Kwon may be on his way to the US, according to a report from the Wall Street Journal.

The Journal reports that Montenegro plans to extradite Kwon to the US rather than South Korea. Kwon faces charges in both countries.

Kwon has been held in prison in Montenegro since March after authorities alleged that he falsified travel documents. He was sentenced to four months in prison back in June. 

The US Securities and Exchange Commission has an open case against both Kwon and Terraform Labs, alleging the offer and sale of unregistered securities. South Korea charged Kwon with fraud and violations of the country’s capital markets laws. 

Both the company and Kwon faced scrutiny from regulators after the collapse of the algorithmic stablecoin TerraUSD (UST). The stablecoin’s failure triggered a $40 billion crash in the crypto market and spurred the bankruptcies of multiple lenders with exposure to UST, including Celsius and Voyager. 

Kwon’s extradition was approved by a court last month. Justice Minister Andrej Milovic was given the decision on where to send Kwon. According to local media reports in Montenegro, Kwon attempted to appeal the extradition.

The Journal report cites unnamed sources and quotes Milovic as saying that the “public will be informed of the decision in a timely manner.”

In the US, the SEC and Terraform have gone back and forth in regards to a deposition from Kwon — which Kwon’s lawyers argued was “impossible” — and a summary judgment from Judge Jed Rakoff. 

The SEC wants Rakoff to rule on whether or not the tokens offered were indeed securities, as the regulator alleges, so that the decision is not up to a jury.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2023

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Unlocked by Template.png

Research

With the spot ETH ETF approval, the institutions are coming. stETH - given its dominance in marketshare, existing liquid market structures, and highly desirable properties - is poised for institutions.

article-image

The distributed cell plan provider started selling its own hotspots in October 2023

article-image

The Brazil-based asset manager’s filing comes during a year of milestone bitcoin and ether fund approvals

article-image

The purchase of five sites in Georgia set to help CleanSpark hit its mid-year operating hash rate target of 20 EH/s

article-image

Plus, it’s beginning to look like we may be in for a cruel summer

article-image

Sponsored

Engaging with XDC provides access to cutting-edge financial tools and places investors at the forefront of the trade finance revolution

article-image

Plus, an update on spot ETH ETFs and what’s on this week’s economic calendar