Src: Reuters
The extradition of South Korean crypto entrepreneur Do Kwon to the United States has been approved officially by Montenegro. The decision comes after a lengthy legal process with Montenegro's Justice Minister Bojan Bozovic saying that the majority of legal criteria favored the United States request over South Korea's.
In connection with the $40 billion collapse of his company's cryptocurrencies, TerraUSD and Luna, which devastated numerous investors, Kwon, co-founder of Terraform Labs, is charged with fraud.
Kwon was detained in March 2023 while trying to use a fake passport to escape to Dubai, and he has since been imprisoned in Montenegro.
Do Kwon faces multiple charges in the United States which include the allegations of deceitful practices in financial transactions, Misrepresentation related to the stability and value of Terraform's cryptocurrencies, TerraUSD and Luna, commodities fraud, and collaborating with others to commit fraud against investors.
The collapse of TerraUSD and Luna in May 2022 had an intense impact on crypto markets globally, resulting in approximately $50 billion in losses for investors and contributing to a wider market decline of around $400 billion.
A crisis of confidence was sparked by this incident, which raised selling pressure across various cryptocurrencies.
Regulatory bodies were also prompted worldwide by the fallout to intensify scrutiny of stablecoins and crypto operations with calls for stricter regulations aimed at preventing such like incidents.
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